© batman2000 dreamstime.com Analysis | September 02, 2019
European semi distribution slows down through spring quarter
DMASS reports a decline of 1% in semiconductor growth in Q2/2019. Slowdown expected after two record years. Italy, Russia and Israel struggle. Power, Analog and Logic hold up strongly.
The second quarter of 2019 finally showed the long-expected slowdown of the components distribution market in Europe, largely in line with the overall market trends. According to DMASS Ltd., the European Semiconductor Distribution Market declined 1% to EUR 2.32 billion in Q2. Georg Steinberger, chairman of DMASS: “As stated in our last announcement, the slowdown was expected, due to weaker bookings in the prior periods, and it will continue during the year. Influencing factors split between industry-internal reasons – overcapacity in memories, long inventory tail at big customers, lacklustre sales in consumer products, suppliers taking back business from distribution and subsequent price declines – and macro-effects like trade conflicts, Brexit and economic uncertainty throughout the industry, despite excellent opportunities. Combined with DTAM to TAM changes all have an effect on continued price pressure, which overall is influencing the magnitude of the downturn we see.” At country and region level, Q2 displays a very disparate picture, from double-digit growth in smaller countries to double-digit decline in medium-sized markets like Italy, Israel and Russia. Among the major markets, Germany grew by 0.1% to EUR 681 million, Italy shrank by 11.3% to EUR 200 million, France dropped 3.9% to EUR 155 million, UK (without Ireland) grew by 4.2% to EUR 155 million, Eastern Europe by 4% to EUR 406 million Euro and Scandinavia by 3% to EUR 207 million. Georg Steinberger continues stating: “As the regional markets are very different in structure and customer nature, it is no surprise to see differences as described above. In EMS-driven markets in Nordic and Eastern Europe, all trends from double-digit growth to double-digit decline are visible in Q2, while for example the UK despite all Brexit anxiety holds up rather nicely for another quarter. The Italian market on the other hand lost 11.3% compared to last year, is negative for the second quarter and faces a long, hot summer quarter.” At the product level, almost every area turned negative, except some selected Power, Sensors, Opto, Analog, Memory and Logic categories. Analog products grew 1.5% to EUR 687 million, MOS Micro shrank 5.6% to EUR 455 million, Power grew 2.6% to EUR 258 million, Memories declined 0.8% to EUR 206 million and Opto lost 8.4% to EUR 203 million. While Programmable Logic dropped by 4% to EUR 147 million, Other Logic grew another staggering 19.3% to EUR 137 Million. Georg Steinberger: “Last quarter looks a bit awkward if you compare products that are connected through project-driven sales – Analog grows while MOS Micro declines, Programmable Logic drops while ASSPs clearly explode, Opto and LEDs decline, Sensors grow. If you would pick a real setback, it would probably be the disappointing LED business. To be noted positively are Power-MOS which have grown to the second-biggest product category in distribution, only outperformed by Power Management. And Digital Logic is slowly starting to overtake Programmable Logic. Comrade Trend says hello…” What is ahead for the rest of the year is hard to predict in a shaky environment as faced in 2019. Steinberger: “Distribution is well positioned, excellently organized and more predictable than the rest of the market. It is about time that the real value of what we do for the industry is properly recognized by both sides of the supply chain.”
Czech company acquires German PCB manufacturer Gatema a.s. has completed the biggest acquisition in its history to date. The Czech Republic-based has purchased Germany's Kubatronik – Leiterplatten GmbH Company, a company focused on the development and manufacturing of prototype and test boards.
Eltas new plant paves way for more complex electronics Slovenian electronics specialist Eltas recently inaugurated its new production facilities in Šentjernej. An investment that will see them expanding their product portfolio to include more advanced solutions.
GM: Detroit-Hamtramck to be EV assembly only GM announced today a USD 2.2 billion investment at its Detroit-Hamtramck assembly plant that will make it the automaker’s first facility completely dedicated to EV auto assembly.
Indra opens massive radar factory as it concentrates its manufacturing The new factory, located in San Fernando de Henares, will concentrate the company’s entire radar manufacturing for civil and military use.
New production lines installed at ESCATEC Penang Several new production lines are being set up at the company’s main facility in Penang, which hosts ESCATEC Electronics (EEM) and ESCATEC Medical (EDM).
Greg Grace takes the helm as MD of Incap Estonia Greg Grace has been appointed Director, Operations Estonia, and Managing Director of Incap Electronics Estonia, and member of Incap Group’s Management Team.
NA semi equipment industry posts December 2019 billings North America-based manufacturers of semiconductor equipment posted USD 2.49 billion in billings worldwide in December 2019 (three-month average basis), according to SEMI.
NOTE increases deliveries to Hövding Hövding 3, the latest version of the company’s airbag helmet, is fully ramped up at NOTE’s plant in China.
Eguana inks deal for residential energy storage systems Eguana Technologies Inc. has entered into a development contract with an unnamed renewable energy company to develop and certify proprietary residential storage systems for distribution through its sales channels across global markets.
BlueRing Stencils picks up Stone Mountain Tool BlueRing Stencils has acquired Georgia-based tooling supplier Stone Mountain Tool.
Bosch increases its stake in fuel-cell expert Ceres Power Bosch has increased its stake in Ceres Power from 3.9% to circa 18%. Bosch’s total investment in the company will be approximately 90 million euros.
Haldex Heidelberg staff urges management to reconsider the closure It was back in October of 2019 that Haldex announced that it was streamlining its production in Europe, a decision that would see the move of production from Heidelberg in Germany to Szentlörincskáta in Hungary.
Foxconn’s Gou: WI plant operational this year Foxconn Technology Group founder Terry Gou is indicating that the company’s new manufacturing facility in Mount Pleasant, Wisconsin, still currently under construction after multiple slowdowns, will generate products beginning this year.
Zentech acquires Trilogy Circuits LLC Zentech Manufacturing has acquired Texas-based Trilogy Circuits LLC, a provider of EMS services to military primes and other high-reliability industries in Texas and across the United States.
Markus Jeck to take lead of Enics Switzerland EMS provider Enics has appointed Markus Jeck as the new General Manager of Enics Switzerland.
Hanwha Precision Machinery launches tech centre in Germany Hanwha Techwin Automation Americas' – formerly Samsung C&T Automation – unit, Hanwha Precision Machinery, has launched an integrated tech centre for Europe in Germany to accelerate its global expansion.
TTM Technologies to sell four China manufacturing plants TTM Technologies is executing a definitive agreement under which the company has agreed to divest its four China manufacturing plants – which make up substantially all of the assets of its Mobility business unit.
Incap acquires AWS Electronics EMS provider Incap has signed an agreement to acquire 100% ownership of AWS Electronics Group.
Ampleon, Rochester Electronics ink deal RF power products supplier Ampleon and semiconductor manufacturer Rochester Electronics have forged a strategic partnership to extend the global supply of Ampleon’s VDMOS portfolio of high-performance RF transistors.
Trust Automation appoints new COO California-based Trust Automation Inc., a supplier of automation technology for industrial and defense applications, has welcomed Teddy Ross to the company as chief operations officer, effective immediately.
TDK Ventures invests in SLD Laser TDK Ventures Inc., a subsidiary of TDK Corporation, has invested in SLD Laser, a specialist in the use of gallium nitride (GaN) in the commercialization of visible laser light sources for multiple applications including automotive, mobility, medical, and specialty lighting.
Sono Motors hits its target - community funding works The Munich-based mobility provider Sono Motors has successfully completed the extension of its campaign to finance the company and has exceeded its target of EUR 50 million.
New group structure at Mycronic aimed securing future growth Swedish creator of production equipment, Mycronic, has grown quite a bit during the last years; both organically but also through acquisitions. And with that growth some structure is in order.Load more news