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© handmadepictures dreamstime.com Analysis | November 17, 2015

DMASS maintains healthy growth pattern

Components distribution seems to be amazingly robust throughout 2015. According to DMASS (Distributors’ and Manufacturers’ Association of Semiconductor Specialists), semiconductor distribution sales in Q3/CY15 grew by 17.9% to 1.86 Billion Euro compared to Q3/CY14.
This is close to record sales in Q2/CY15, all the more surprising as the summer quarter normally shows a sequential decline, due to seasonality.

Again, exchange rate effects between US Dollar and Euro had their influence, but a significant portion of the growth remains organic, as at the same time volume sales grew double digit.

Georg Steinberger, chairman of DMASS: “This will become a record year for DMASS, breaking the 7-Billion-Euro mark for sure. Even though the exchange rate effects will disappear soon, European semiconductor distributors will continue to grow, albeit at a slower pace. We certainly will remain mindful of potential macro-effects like China, the refugee crisis or the shakeup in the automotive industry, which could easily affect further market development.”

From a regional view, the massive growth in almost all of Eastern Europe drove a huge portion of DMASS’ overall growth in Q3/CY15: Eastern Europe (excluding Russia) grew by a staggering 37.6% to 244 Million Euro. The UK market increased by 17.4% to 158 Million Euro, the same level as Italy, which grew by 16.8%. While Germany climbed double digit (15.8%) to 593 Million Euro, the French market grew by 10% to 135 Million Euro. Demand in Scandinavia seems to have weakened slightly compared to an outstanding first half. Sales grew by 12.5% to 165 Million Euro, Sweden being by far the largest slice of the pie.

Georg Steinberger: “Same story as in Q2: the numbers are highly influenced by different invoicing trends per region (in Dollars instead of Euros) and like in Scandinavia and Eastern Europe by huge growth in the supply chain sector. As the Euro/Dollar comparison will become less in Q4, growth rates should normalise accordingly.”

From a product perspective, the focus was clearly on design products like Analog, MOS Micro and Digital Logic (Other Logic) in general. With 540 Million Euro, Analog components as the major product group came in right at the DMASS average growth of 17.9%; MOS Micro Logic (Microprocessors, Microcontrollers and DSPs) grew by 21.5% to 394 Million Euro; Other Logic (ASSPs, ASICs and other complex logic devices) increased by 32.1% to 95 Million Euro. Also above average: Sensors (22.4% to 43 Million Euro; Memories 25.1% to 150 Million Euro. Optoelectronics grew slightly below average (16% to 193 Million Euro), however, LEDs as the lion’s share of Opto, grew over-proportionally. Discrete, Standard Logic and Programmable Logic all ended the quarter with increases between 10 and 14.5%.

Georg Steinberger: “I can almost repeat my statement from Q2 – the music in distribution plays at the sweet spots like Analog, Micros, Other Logic and high end LEDs, which account for over 60% of the total DMASS sales. A clear sign that demand creation is not just a buzzword, but a viable value proposition. It would be desirable that the market recognises this with a fairer market value for the design support investments in distribution.”

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