© dmitry bomshtein dreamstime.com Components | August 21, 2020
Deep COVID-19 impact on European semiconductor distribution in Q2
What was still a mix of market- and pandemic-driven uncertainties in Q1, turned out to be a real, directly COVID-19 and lockdown-related downturn for the European Semiconductor Distribution in the second quarter of 2020. According to DMASS, sales in the European Semiconductor Distribution Market fell by 20.7% to EUR 1.82 Billion.
“As feared in our Q1 PR, the COVID-19 pandemic and its economic aftermath, starting across Europe in February and March, hit the electronics industry with full force in the second quarter. Manufacturing shutdown, economic uncertainties among consumers and companies and lack of supply chain visibility drove many customers to step on the ordering brake and led to a lot of pushouts on existing orders. Ironically, it could have been worse, and we do not really know what will come at us in the second half of 2020 – Rally or Rafting,” says Georg Steinberger, chairman of DMASS, in a press release. At a country or regional level, the situation was equally bad across the board and major regions and markets ended with a double-digit decline (except Ireland, Netherlands, Austria and Russia): Germany went down by 21.6% to EUR 528 million, Italy ended at -19.3% and EUR161 million, France at -21.4% and EUR 121 million, the UK at -23.6% and EUR 119 million, Eastern Europe at a staggering -30.6% and EUR 279 million and the Nordic countries at -33.2% and EUR 138 million. “It is almost impossible to find anything positive or less negative in Q2, but clearly countries that are predominantly contract manufacturing-driven suffered most,” says Georg Steinberger. No positive news on the product side, except that more design-oriented and exclusive products declined less than standard products. Of the major product groups, Standard Discrete went down by 31.4% to EUR 87 million, Discrete Power by 23.5% to EUR 196 million, Opto by “only” 17.1% to EUR 164 million, Analog by 22% to EUR 534 million, Memories by 32.4% to EUR 141 million, MOS Micro by 15.3% to EUR 383 million, Programmable Logic by 12.8% to EUR 128 million, Standard Logic by 18.2% to EUR 27 million and finally Other Logic by 14.5% to EUR 112 million. “Besides Covid-19, you also see some special effects of product categories slowly deteriorating – arguably legacy technologies like SRAMs and EEPROMs – or disappearing from distribution as an effect of suppliers taking some business direct, like Digital Signal Processors (DSPs). But none of those have a major effect on the totals. However, the fact that standard products are suffering more than expensive specialties is strange, as the financial risk on the customer side is rather low. We will see how this pushback on standard products develops, once the market turns around,” says Steinberger. 2020 will be a year of significant double-digit decline, “whether we like it or not,”, according to Steinberger, “and it could, no, should be the beginning of a reassessment of how we operate as an industry and at a larger scale, as society in general. It is clear that resources become scarcer and the throwaway mentality of the last 50 years will lead to disaster. Technology can play a major part in recreating a sustainable world, but as we can see by its interrupted supply chain, it is also part of the current problem. The big question is: how can the significant influence of technology be used to make changes to a sustainable better world? Can it?”
Sponsored content by Shenzen Kinwong ElectronicThe development trend of printed circuit board products and Kinwong's solution With the rapid development of electronic technology in recent years, printed circuit board (PCB) products are pursuing higher heat dissipation capabilities, with high voltage and high current characteristics, and are developing towards high-density interconnection technology (HDI).
Microchip invests $20M in new Irish development centre Up to 200 new engineering jobs will be created in Cork, Ireland as Microchip Technology invests USD 20 million to create a new development centre.
Explosive growth in Automotive DRAM demand expected Driven by such factors as the continued development of autonomous driving technologies and the build-out of 5G infrastructure, the demand for automotive memories will undergo a rapid growth going forward, according to TrendForce’s latest investigations.
Renesas Naka facility is back to full operation Following the earthquake that hit the coast of Fukushima Prefecture and the surrounding areas on February 13, Renesas shut down production at its Naka factory to investigate potential damages. Since then then company has brought the plant back online bit by bit.
Rücker Lypsa is now EDAG Engineering Spain Barcelona-based company Rücker Lypsa S.L. has been operating under the name of "EDAG Engineering Spain, S.L." since January, 2021.
Continental invests in German-US AI chip start-up Continental has acquired a minority stake in the German-US start-up Recogni, a company working on a new chip architecture for object recognition in real time based on artificial intelligence (AI).
Edmund Optics opens new assembly and design facility Edmund Optics, a provider of optical and imaging components, has opened a new Assembly and Advanced Design Facility in Tucson, Arizona, the second Edmund Optics location in the state.
SEMI calls on Biden to reinvigorate US semiconductor manufacturing SEMI, along side 16 industry groups have sent a letter to President Biden urging the administration to bolster domestic semiconductor manufacturing and research.
Solas OLED settles patent disputes with LG Display Solas OLED, an Irish company that specialises in OLED technologies that it licenses to consumer electronics manufacturers, has entered into a Settlement and License Agreement with LG Display, resolving a number of patent infringement actions brought by Solas against LG Display and a certain number of its customers, including Sony.
Panthronics seals global partnership agreement with AdvanIDe Panthronics AG, a fabless semiconductor company specialising in high performance wireless technology, has signed a global partnership agreement with specialist supplier of NFC, RFID and smart card components, AdvanIDe.
Logic ICs account for the largest share of China’s IC market China became the largest IC market in the world in 2005 and has continued to grow in size since then. In 2020, the Chinese IC market increased to USD 143.4 billion, a 9% gain from USD 131.3 billion in 2019.
Why Is my processor leaking power? That sounds like an open-ended question Question: Why is my processor consuming more power than its data sheet suggests?
BAE Systems to produce GPS receivers in Iowa BAE Systems received a USD 247 million contract to design and manufacture an advanced military M-Code GPS receiver and ASIC.
Osram invests in California-based UV LED specialist Osram acquires around 20 percent of US company Bolb Inc. via its venture capital arm Fluxunit. With its investment in the California-based UV-C LED specialist Bolb Inc., Osram is further expanding its technological know-how of disinfection applications with UV-C light.
Cohu's 4000th handler makes its way to Infineon Technologies Back-end semiconductor equipment supplier Cohu has shipped 4000th handler from its manufacturing facility in Melaka, Malaysia. The milestone system, a MATRiX thermal pick-and-place handler was delivered to semiconductor manufacturer Infineon for testing automotive and industrial devices.
NXP is watching the situation in Austin carefully As previously reported, the unusually severe winter weather conditions has crippled power facilities in Texas. Which has led to several Austin semiconductor facilities standing idle without power.
Using A2B for Audio-Conferencing Systems One of the main hurdles in audio installation in a modern conference room these days is the need to interconnect a variety of input/output transducers into the main audio console. This is usually done using individual point-to-point shielded cables for each node, which is bulky and still requires separated external power supplies on each of them.
FabExchange acquires ON Semiconductor's Rochester site Private equity and divestiture partner, FabExchange, says it has completed the acquisition of ON Semiconductor’s Rochester, New York site.
Samsung’s semiconductor plant in Austin sits powerless The winter weather in Austin, Texas is causing issues for several semiconductor manufacturers in the city following a decision by Austin Energy to cut the power to the companies.Load more news