European components distribution reports record 2022
DMASS reports Q4 growth of 38% in semiconductors and 8% in interconnect, passive and electromechanical components. Second consecutive record year in sales. Normalisation is inevitable, but the outlook is difficult.
Distribution of European components ended 2022 in a record-breaking fashion. DMASS Ltd. says that unexpectedly robust semiconductor sales and normalising sales in IP&E (Interconnect, Passive and Electromechanical) components led to reported revenues of EUR 5.03 Billion in Q4, which were 27.8% higher than the same quarter last year. Semiconductors saw record Q3 sales of EUR 3.62 billion, and IP&E finished at EUR 1.41 billion, or 7.9% more than Q4 of the previous year. In total, companies represented in DMASS reported consolidated components revenues of EUR 19.5 Billion for 2022, an increase of 32.6% over 2021.
“While we are certainly happy about record numbers, we more importantly feel a general relief that availability is improving – although not for all products – and customers will see their demands being met now to a large extent. Q4 numbers were an all-time record for semiconductor distribution, a stark contrast to what can be seen in the overall market at the moment,” says Hermann Reiter, chairman of DMASS, in a press release.
Reiter continues to state that while in 2021 volume and sales growth were nearly balanced, last year saw a mix of price increases and exchange rate effects as well.
“In total, the share of distribution in the components market has gone up significantly, considering that the total components market in Europe grew at a much slower pace.”
Semiconductors growth in Q4 amounted to 37.7%. At a country/regional level, the numbers varied significantly, from -97% in Russia to +53% in Switzerland. Major regions grew as follows: Germany by +49.6% to EUR 1.06 billion; Italy by 34.7% to EUR 316 million; France by +41.9% to EUR 243 million; UK by 30.4% to EUR 227 million; Eastern Europe by 39.9% to EUR 659 million and Nordic by 46.4% to EUR 311 million. Significantly above-average results were recorded in Switzerland, Austria, Iberia and Turkey, at or below average in Benelux, Israel and Ireland.
At product level, by far the biggest growth occurred in Programmable Logic, Other Logic (ASSPs) and MOS Micro, while Analog products hit the average and all other areas showed signs of normalisation (Discrete, Power, Memories and Sensors) or outright disappointment (Opto). Interconnect, Passive and Electromechanical (IP&E) components again grew at a slower – normal – pace in Q4/22.
“Admittedly, the last 2 years have been extremely positive from a growth perspective but very challenging through a prolonged allocation, with some products still in short supply today. 2023 promises some relief here, but the overall economical and political signs are anything but predictable or plannable. In our opinion, distribution has done a maximum of support for customers and increased and accelerated deliveries as much as possible, as well as created more possibilities to exchange data digitally in much faster fashion,” Chairman Hermann Reiter concludes.
For more details visit DMASS.