Power, Analog and Logic hold up in market slowdown, says DMASS

August 12, 2019 // By Julien Happich
The second quarter of 2019 finally showed the long-expected slowdown of the components distribution market in Europe, largely in line with the overall market trends. According to DMASS Ltd., the European Semiconductor Distribution Market declined 1% to 2.32 Billion Euro in Q2.

“As stated in our last announcement, the slowdown was expected, due to weaker bookings in the prior periods, and it will continue during the year. Influencing factors split between industry-internal reasons – overcapacity in memories, long inventory tail at big customers, lacklustre sales in consumer products, suppliers taking back business from distribution and subsequent price declines – and macro-effects like trade conflicts, Brexit and economic uncertainty throughout the industry, despite excellent opportunities. Combined with DTAM to TAM changes all have an effect on continued price pressure, which overall is influencing the magnitude of the downturn we see”, explains Georg Steinberger, chairman of DMASS.

At country and region level, Q2 displays a very disparate picture, from double-digit growth in smaller countries to double-digit decline in medium-sized markets like Italy, Israel and Russia. Among the major markets, Germany grew by 0.1% to 681 Million Euro, Italy shrank by 11.3% to 200 Million Euro, France dropped 3.9% to 155 Million Euro, UK (without Ireland) grew by 4.2% to 155 Million Euro, Eastern Europe by 4% to 406 Million Euro and Scandinavia by 3% to 207 Million Euro.“

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