European Semiconductor distribution sales sets new records

The European components distribution market is off to a record year. The slow start into 2021 has been completely replaced by a double-digit rally both in Semiconductors and IP&E (Interconnect, Passive and Electromechanical) components. Q3 distribution revenue in semiconductors, as reported by DMASS members, grew by 31.8% to EUR 2.46 billion, IP&E distribution sales by 44.7% to EUR 1.13 billion. Combined, DMASS members reported 35.6% growth to EUR 3.6 billion for the period. Herman Reiter, newly appointed chairman of DMASS: “The shortage of components across the board still defines the current market situation. While we seem to enjoy a healthy growth at the moment, the pressure is on all market participants to find solutions and avoid further disruptions. When the situation will change is not clear, but we hope that 2022 will bring some relief. It is apparent that the shortage leaves its impact in the overall economic outlook across European industries.” Semiconductors: The spread of growth rates in the semiconductor distribution in Q3 ranged from -29% to 112% (both values not representative of the market but more of structural changes). Major countries and regions nevertheless showed quite a deviation, too: Germany grew by 25% to EUR 672 million, Eastern Europe by 28.7% to EUR 430 million, Italy by a staggering 54% to EUR 219 million, Nordic by 44.8% to EUR 203 million, the UK by 40% to EUR 167 million and France by 36.4% to EUR 152 million. At a product and product group level, Analog and MOS Micro as the major product groups trailed the overall market growth, while Discrete, Power, Sensors, Opto and Memories grew (way above average). Analog products grew by 24.4% to EUR 689 million, MOS Micro by 25.8% to EUR 484 million, Power by 38% to EUR 291 million, Memories by 54.4% to EUR 241 million, Opto by 34.6% to EUR 237 million, Discretes by 57.4% to EUR 149 million, Programmable Logic by 35.1% to EUR 145 million and Other Logic “only” by 11.7% to EUR 122 million. Semiconductor Sensors grew by 39.6% to EUR 72 million and Standard Logic by 35.8% to EUR 34 million. Interconnect, Passive and Electromechanical Components: Starting to report to members only since 2014, DMASS for the first time reports official data on the Interconnect, Passive and Electromechanical components distribution market. Sales of DMASS IPE members grew in Q3//CY21 by 44.7% to EUR 1.13 billion. The regional split is comparable to the Semiconductor market, with Germany and Eastern Europe being the biggest regional markets, followed by the Italy, the UK, France and Nordic. At the product level, Passives (EUR 539 million) and Electromechanical products (EUR 530 million) grew at a comparable pace of 45% and 46% respectively, and represent similar market sizes. Power Supplies (roughly 6% of the IPE market) grew by 35% to EUR 65 million. Chairman Hermann Reiter concludes: “It is amazing how in times of shortage, many product areas show similar high growth rates while in normal times the spread is quite huge. It is also rare to see IPE products outgrow the semiconductor side by such an extent. For 2021, we are optimistic to come close or exceed the 20% mark for year on year growth of all components; 2022 may tell a different story. We would hope that by mid-2022 we will see some relief on the supply side and the supply chain. Long-term, for the first time since the 80s, our industry sees huge geopolitical inflection marks, where availability and access to technology may drive the development rather than the actual end market demand.”

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