European Semiconductor Distribution Market (DMASS) Enjoys Healthy Year-End 2013

Q4/CY13 grew by 11.1% over Q4/CY12. Stabilisation occurs across all markets and regions. CY 2013 ends at low single-digit growth.

London, February 25, 2014 – A healthy fourth quarter lifted the semiconductor distribution industry in Europe in 2013 across the base line and provided an annual growth of 2.6%. According to DMASS (Distributors’ and Manufacturers’ Association of Semiconductor Specialists) sales in Q4/CY13 ended with an increase of 11.1% at 1.41 Billion Euro. The full calendar year 2013 ended at 5.87 Billion Euro total distribution sales.

Georg Steinberger, chairman of DMASS, reviewed the results: “2013 turned out as predicted. After a disappointing and sluggish 2012, the return to normal growth came as a relief to the whole industry. Unfortunately, we experienced a further decline of average selling prices, as the over-proportional growth in volume confirms. On the positive side, very strong order books suggest that 2014 will be a healthy year (provided no major disasters occur).“

Looking at the regions, no real surprises occurred during Q4/CY13. Germany grew by 11.5% to 433 Million Euro, nearly 31% of DMASS Total. Italian distribution sales increased by a surprising 14.1% (to 130 Million Euro); France grew even faster with 17.9% to 109 Million Euro; the UK trailed the major regions of Europe with an increase of 8% to 121 Million Euro. Eastern Europe grew by 13%, the Nordic countries by 11.6% and Israel by 21%. The only countries/regions with a negative trend were the Baltic States, Russia and Hungary. On an annual basis, the main culprits for the slow overall growth were the UK, Germany and Russia, who all ended negatively.

Georg Steinberger: “Looking at the full year, a strong South and a weak Centre would have been the last thing you expected, considering all the macro-economic news influencing the electronics market and subsequently the semiconductor industry. It is not quite clear what was driving the German weakness, but apparently it is behind us.“

At the product detail level, Programmable Logic remained the weakest spot with 4.1% growth (to 117 Million Euro), followed by Discretes (mainly RF) with 6.9% (to 72 Million Euro) and Analog with 9.8% (to 396 Million Euro). The only major product segment to suffer a slight decline was Sensors at -2.2% (only in Q4, the full CY ended at a healthy 7.5%). The highest growth rates in Q4 occurred at DRAMs (40.4%) 32-Bit-MCUs (35.7%) and NAND-Flash (33.9%), the lowest at EPROMs (-34.7%) and RF Discretes (-8.1%).

Georg Steinberger: “Sequential quarterly developments show a very disparate and rarely consistent pattern, so let’s focus on the annual picture. All areas recovered nicely, except two major ones: Programmable Logic and MOS Micro, the latter one having only remained positive due to high-end MCUs. So what is wrong here? The conclusion we came to is the increased price pressure. We hope this pattern is going to change during 2014.“

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 memory, 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 34 active members 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 semiconductor manufacturers.