© begemot 30 dreamstime.com Business | February 24, 2020
Significant decline in sales in the German component distribution
German component distribution shrinks by 20% in the fourth quarter of 2019, says the FBDi e.V.
In the fourth quarter of 2019, the German distribution of electronic components has experienced the sharpest decline in orders and sales for years, reflecting the economic situation in the market as a whole. Sales of the distribution companies organised in the Fachverband Bauelemente-Distribution (FBDi e.V.) fell by 20% to EUR 696 million. Orders decreased by 25% to EUR 651 million. The book-to-bill rate improved slightly to 0.93. The product segments developed almost in unison. Semiconductor sales shrank by 20.8% to EUR 495 million, passive components declined by 20% to EUR 84 million, and electromechanics slipped by 17.7% to EUR 74 million. Power supplies fell by 16.3%, displays by 16.6%, sensors by 14.5%, and assemblies and systems by 9.8%. The market distribution remained almost the same: semiconductors 71%, passives 12%, electromechanics 11%, with the remainder coming to 6%. The situation looked relatively moderate for 2019 as a whole: Total distribution sales fell "only" by 7.2% (to EUR 3.34 billion), while orders fell by 25% to just under EUR 3 billion. "What is surprising in the fourth quarter is not the decline itself, but the rather high -20%. It may be reassuring that the year as a whole remained within expectations - or even slightly above them, but this did not exactly create positive dynamics for the outlook of 2020. What makes it even more difficult is the outbreak of the corona virus in China and the potential impact on the supply chain. Selective shortages of electronic products and raw materials cannot be ruled out," says FBDi executive chairman Georg Steinberger. The restart of production in China will certainly have a major impact on further development, which Steinberger believes will continue to shift towards March in various product segments: "The health and safety of people in China and elsewhere is an absolute priority, so it's important to provide the greatest possible support for those affected. As far as the supply chain is concerned, our recommendation would be to talk, plan and not panic." According to Steinberger, there is not much new to report on the economic climate in Germany: "Although the PMI (Production & Manufacturing Index of IHS Markit) improved from its historic low of 41.7 points to 45.3 in January, it is still far from an optimistic outlook and is well below the European average. Germany is the pessimism world champion." As far as the components industry and distribution are concerned, the FBDi still expects a positive 2020 and a further upswing in 2021: "We believe that the innovative power of the industry can help to overcome the current social paralysis. The necessary course-setting, whether for the climate or for the modernization/digitization of society, is becoming more urgent than ever, otherwise we will not only miss our self-imposed targets, but also fail to achieve our technological leadership".
onsemi opens expanded SiC facility in New Hampshire The newly inaugurated site will increase the company’s SiC boule production capacity by five times year-over-year and almost quadruple the number of its employees in Hudson, New Hampshire by the end of 2022.
China says US CHIPS Act is a threat to trade China has criticised the new US law aimed at encouraging domestic chip production and ultimately reducing reliance on Asian production – something that China sees as a threat to trade and also an attack on Chinese business.
RS to acquire Risoul for $275 million RS Group announces that it has entered into an agreement to acquire Risoul y Cia, S.A. de C.V. (Risoul), a family-owned distributor of industrial and automation product and service solutions in Mexico, for a cash consideration of USD 275 million.
Intel said to be close to $5 billion Italian deal Intel is reportedly closing in on completing a deal to build a semiconductor packaging and assembly plant in Italy – a deal worth an initial USD 5 billion.
Ferrotec breaks ground on new factory in Malaysia Work begins on a new facility aimed at expanding the company's position as a supplier of materials to the semiconductor manufacturing equipment industry.
Micro-Epsilon opens competence centre for micromechatronics Sensor specialist Micro-Epsilon recently opened a new production center for micromechatronics at its headquarters in Ortenburg, Germany – where miniature mechatronic systems for semiconductor machine design and aerospace applications are manufactured.
Micron to invest $40 Billion in US memory manufacturing As a direct response to the signing of the CHIPS Act, Micron has announced the largest ever investment in US memory manufacturing – estimated to create 40,000 US jobs.
Biden signs CHIPS bill to bolster semiconductor production US President Biden has now signed into law the bipartisan CHIPS and Science Act of 2022 – which aims to stimulate investments that will strengthen US manufacturing, supply chains, and national security.
Qualcomm deepens its ties with GlobalFoundries GlobalFoundries and Qualcomm say they are more than doubling their existing long-term semiconductor manufacturing agreement.
New Heilind Electronics Europe warehouse in Poland Due to the dynamic development and customer acquisition in new European markets, Heilind Electronics Europe decided to rent the first warehouse and office in Poland.
Leuze starts operations at new Malaysian plant Following just 16 months of construction, Leuze has opened its new production site in Malacca, Malaysia.
Indium partners with SAFI-Tech on solder product development Indium Corporation and SAFI-Tech will evaluate market applications for supercooled solder materials and explore the development of new products.
Rohm SiC MOSFETs qualified for automotive use Rohm’s latest 4th generation of SiC MOSFETs has been fully qualified in Semikron’s eMPack modules for automotive use.
Gapwaves and Bosch to jointly develop radar antennas Swedish tech company Gapwaves have entered into an agreement with Bosch regarding the development and large-scale production of high-resolution radar antennas for automotive vehicle applications aiming at highly automated driving.
Würth Elektronik ICS opens subsidiary in Italy Würth Elektronik ICS is expanding its activities in Italy with the opening of the new subsidiary Würth Elektronik ICS Italia s.r.l.
Semtech to acquire Sierra Wireless Semtech and Sierra Wireless have entered into a definitive agreement under which Semtech will acquire all outstanding shares of Sierra Wireless for USD 31 per share in an all-cash deal valued at USD 1.2 billion.
Materion looking to accelerate growth with new facility Materion Corporation, a supplier of advanced materials, has established a new facility in Milwaukee, Wisconsin to accelerate the growth of advanced chemical solutions for the semiconductor and EV battery markets.
Cyber incident at SEMIKRON The SEMIKRON Group has become a victim of a cyber-attack by a professional hacker group.
Alexander Battery and Anglia sign distribution agreement Anglia Components, a distributor of electronic components, has signed an agreement with Alexander Battery Technologies for exclusive distribution in the UK and Ireland.
MKS and Atotech deal receive China antitrust clearance MKS Instruments and Atotech have received unconditional merger approval from China’s State Administration for Market Regulation for MKS’ pending acquisition of Atotech.
Micron plans to invest in US memory manufacturing Micron Technology commends the passing of the “Chips and Science” legislation. The company says that this is a big step towards securing the future of semiconductor manufacturing in the United States and advancing American innovation and competitiveness.
Applied Materials looking to future-ready its workforce Applied Materials South East Asia Pte. Ltd. has signed an MoU with the Singapore Institute of Technology (SIT) to develop and implement continuing education and training (CET) programmes for Applied Materials employees.
Kioxia & WDC to receive government subsidy for JV fab Kioxia Corporation and Western Digital Corporation say that their joint venture, the Fab7 manufacturing facility at Yokkaichi Plant, has been approved to receive up to JPY 92.9 billion (USD 699.3 million) in subsidy from the Japanese government.
Green light for the CHIPS and Science Act of 2022 The United States House of Representatives has passed the CHIPS and Science Act of 2022. A decision applauded by SEMI. The bill provides a 25% tax credit for US facilities that produce semiconductors or chipmaking equipment and USD 52 billion in funding for new semiconductor programs.Load more news