Press Release Q1 2004

European Semiconductor Distribution Market returns to growth  

DMASS reports 7 percent increase in semiconductor sales to the industrial channel in the first quarter of 2004. Major markets remain divided. Growth leaders are Iberia and Eastern Europe.

London, May 14, 2004 - The European semiconductor distribution market is on its way back to growth. According to DMASS, semiconductor distribution sales from January to March 2004 amounted to 1,2 Billion Euro. This represents a growth of 7 percent over Q1/CY03 and 25 percent sequentially, over Q4/CY 03 (967 M Euro).

DMASS Chairman Pierre-Yves Ferrard commented on the development: "Our growth in Q1/CY 04 confirms the previously expressed optimism for 2004. While the strength of the upturn still remains to be seen, the sequential growth of 25 percent versus Q4/CY 03 is far stronger than in the previous 2 years and is backed by relatively strong bookings. We continue to experience extended lead-times in several product segments."

Analysed by region, the strongest growth happened in Israel, Iberia, Hungary and Czech Republic, with annual growth rates between 59 and 44 percent. Among the major regions, Germany once more dominated in size (368 Million Euro) and growth (7,6 percent). While Italy (158 Million Euro) and the UK 149 Million Euro), the second and third biggest markets, again declined slightly by 1,7 respectively 5 percent (over Q1/CY 03), France was able to gain some lost ground with a growth of 4,8 percent to 122 Million Euro. Austria and Switzerland grew also by double-digits, Benelux and Scandinavia as a whole grew in the low single-digits.

Pierre-Yves Ferrard: "We continue to see some production shift to Eastern Europe, but it seems that the Western European markets have started to stabilise and grow in substance again. However, we still have a way to go to reach the heights of 2000."

Product-wise, semiconductor sales as represented by DMASS, grew over-proportionally in memories (23 percent), optoelectronics (9,8 percent) and analog components (7,2 percent). Discrete components, MOS Micro and MOS Logic grew at average rates, the only bigger sector that came in negative, was programmable logic (-2,8 percent). More specifically, of the mainstream products, LEDs (33 percent) and EEPROMs (+22%) again were in the lead and grew in high double digits, followed by flash memories, Power MOS and advanced analog (between 21 and 11 percent).

About DMASS

DMASS (Distributors' and Manufacturers' Association of Semiconductor Specialists), a European non-profit organisation, is the only industry body that collates detailed semiconductor distribution market data on a quarterly basis by country and product groups such as microcontrollers, flash memories, analog components and many more. DMASS figures are collected and consolidated by Data Dynamics Ltd.

DMASS, founded in 1989, provides its members with a reliable statistical tool to evaluate their relative mass-market performance. The organisation currently consists of 30 active members and represents between 70% and 80% of the total European distribution market, depending on the regions. To continuously increase its European market coverage, DMASS welcomes new membership applications from distributors and semiconductor manufacturers.