Electronics Production | November 26, 2004

European chip market remains strong

Semiconductor sales through distribution in Europe during the third quarter of 2004 rose 19 % to €1.17 billion from last year according to Distributors' and Manufacturers' Association of Semiconductor Specialists, DMASS.
2004 looks like a good year for semiconductor distribution. Unfortunately, an expected boom has not materialised. The biggest concern for the business today is not so much in the cyclical development but in RoHS and its impact on mid-term bookings and sales.
Regionally, the strongest growth in the third quarter of calendar year 2004 again happened in Israel, Poland, emerging Eastern European countries, with growth rates between 93% and 73% over the comparable quarter of last year.

Spain, France and Switzerland continued their positive trends with growth rates of 41,3%, 27,6% and 24,7%. Germany remains the biggest market, with € 342million, followed by UK € 154 million, Italy € 138million and France € 118million. Eastern Europe still benefits from production transfers, however Western European markets continue to have double digit growth potential as well, according to DMASS.

All major product categories grew by double digits over last year’s third quarter. Growth leader in Q3 and for 2004 in total remained the memories with a plus of 53% - DRAMs, Flash memories and EEPROMs all grew above the average. The only other product groups above average were ‘other MOS-logic’ with a growth of 25.6% and programmable logic with 22.6%. Discrete, opto, analog, MOS micros and bipolar logic all grew between 13.6 and 16.8%. Power FETs grew 29.4%, DSPs up 26.8% and LEDs 249%, DMASS reports.


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