Electronics Production | December 19, 2007

Strong Euro puts semiconductor market<br>in Germany under pressure

According to the ZVEI the semiconductor revenue in Germany was in November slightly higher than in the previous month whereas orders remained on the same level.
Compared to the same month of the previous year orders decreased by eight percent. Accumulated the growth in Germany within the first eleven months of the year 2007 decreased three percent compared to the same time period of the previous year.
Book-to Bill ratio, an indicator for the medium-term trend, reached last month 0.98.

Revenue improved only marginally at constant orders contrary to the seasonal usual trend in November. In total market growth in 2007 will end up with a clear minus compared to the previous year. Main reason is a weaker market for discrete and optoelectronic components whereas ICs remained on the same level as last year.

The strong Euro is meanwhile the most important influence factor for the weak growth. Calculated in Dollars Germany reached in November a plus of 5 percent and is also ahead of the growth of entire Europe.


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