European component distribution up 43% in Q3 as memory prices soar

Semiconductors drove most of the growth, according to a press release from DMASS, the association that collects distribution data from its members. Semiconductor sales rose by 53.3% to EUR 3.5 billion in the third quarter, and by 36.9% to EUR 9.5 billion for the year to date. Memory stood out by a wide margin, with sales up 189.4% so far this year, which DMASS attributes to persistent pricing effects as well as recovering demand.

The rest of the semiconductor portfolio also grew, though at a slower pace. Discretes rose by 30.8%, MOS micro logic by 26.6% and analog by 24.9%. Power products grew by 11.5%, programmable logic by 8.1% and opto by just 1.7%, which DMASS takes as a sign that inventory normalisation is still under way in some segments.

Interconnect, passive and electromechanical components (IP&E) grew by 20.3% to EUR 5.6 billion for the year to date, and by 26.9% in the third quarter. DMASS describes IP&E as one of the clearest indicators of underlying industrial activity, since it’s less affected by price swings than parts of the semiconductor market.

“Particularly encouraging is the breadth of this expansion. While semiconductors continue to lead the market, we are also seeing solid progress across interconnect, passive and electromechanical products, reflecting healthier demand fundamentals throughout the value chain,” says Hermann Reiter, Chairman of DMASS Europe.

Growth was strongest in Israel, up 50.7% for the year to date on demand from aerospace, defence, AI and advanced technology. Ireland rose by 35.9%, which DMASS says is likely linked to the country’s concentration of cloud and data centre activity amid the sharp recovery in memory. The Nordics grew by 35.4% and Germany, the largest market, by 33.0%. Southern Europe grew more slowly, with Italy up 21.0% and Iberia up 19.6%.

DMASS notes that geopolitical uncertainty and possible disruptions in energy supply remain risks.