May 5, 2023
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

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.”

Details: DMASS-PR-Q1-2023 – May 5 2023

About DMASS:

DMASS Europe e.V., (until recently DMASS Ltd.) a European non-profit organisation, is the only
industry body that collates detailed electronic components distribution market data on a quarterly basis by country and product groups such as Microcontrollers, Flash Memories, Analog components, Passives, Electromechanical products and many more.
DMASS was founded in 1989 and provides its members with a reliable statistical tool to evaluate
their relative mass-market performance. The organisation consists of 40 active members in 2022 and represents between 80% and 85% 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 electronic components manufacturers.