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European Components Distribution (DMASS) grows amid improvements in availability.

Key facts: – European Components Distribution grows by 15.2% to 5.9 billion Euro. – Semiconductors finish at record 4.08 billion Euro. – Different pace in Semiconductors and Interconnect, Passive & Electromechanical. – Demand slightly softer, availability improves.

Key quote: Hermann Reiter, Chairman DMASS Europe e.V.: “The surprising revenue growth in Q1 cannot hide the reality of full inventories in the channel. At the same time, we share the general optimism in the European industry that the slowdown will be short.” Note to editors: – DMASS Europe e.V. replaces DMASS Ltd. as reporting association. – DMASS Europe represents min. 85% of European components DTAM. – Due to additional members, revised history shows higher numbers than previous releases.

Berlin, May 5, 2023 Topping last year’s record numbers, European components distribution ended the first quarter of 2023 with surprisingly strong sales numbers for both Semiconductors and IP&E (Interconnect, Passive and Electromechanical) components. Semiconductors in Q1 grew by 22.9% to 4.08 billion Euro, IP&E by a much more moderate 0.9% to 1.82 billion Euro. Q1 in total grew by 15.2% to 5.9 billion Euro.

Hermann Reiter, chairman of DMASS: “After Q4 of 2022 it was hard to imagine that our market will grow again, both year over year and sequentially, specifically since the slowdown in orders was visible for a few months now. The surprising revenue growth in Q1 cannot hide the reality of rather full inventories in the channel. At the same time, we share the general optimism in the European industry that the slowdown will be short. As our core business segments aren’t PCs and smart phones, but thriving segment like automotive and industrial, we are confident that after the inventory digest, demand will grow again dynamically.”

Semiconductors (Q1): With a total of 4.08 billion Euro, DMASS delivered the highest ever reported semiconductor revenues. The growth occurred across all countries and regions although in varying pace. Of the major countries, Germany recorded the highest increase. DMASS Europe e.V. Press Release Q1-2023 2 Product-wise, Micros, Programmable Logic and Other Logic (ASICs, ASSPs) showed the highest growth, followed by Analog products .

Interconnect, Passive and Electromechanical Components (Q1): The IP&E segment showed a surprising sequential uptick of 15% versus Q4/22, but a tiny growth of 0.9% to 1.82 billion Euro versus Q1/22. Growth distribution across DMASS Europe e.V. Press Release Q1-2023 3 countries was totally different from semiconductors (which is mainly due to a different membership structure in IP&E). While Passives decreased by 2.3% (special passive components saw an increase), Connectors and Electromechanical components as well as Power Supplies remained positive.

Chairman Hermann Reiter: “The growth curves in Semiconductors and IP&E have been quite different for a while, with IP&E growth peaking a few quarters before semis. Therefore, we have been positively surprised in Q1. What is also visible is that special components on both sides are still seeing growth peaks which may indicate a shift away from standard technologies.” However, the special situation in distribution, compared to a total market that sees stronger skid marks, makes a prediction difficult, said Reiter: “Bookings have certainly decreased but not to the extent we have feared. We would expect a slowdown for 2023, but at moderate levels, and see a lot of optimism from customers for the long-term prospects of the components business in Europe.”