Allocation and shortage continue to make their mark on the European components distribution business, but are now accompanied by partial relief in some product areas.
DMASS says that semiconductor distribution sales – as reported by members – grew by 33.4% to EUR 3.09 billion. IP&E (Interconnect, Passive and Electromechanical) components grew by 19.6% to EUR 1.51 billion. In total, the components distribution market grew by 28.5% to EUR 4.60 billion.
“Coming from an extremely good Q2/21, it is no surprise that the growth rates in the last quarter have been lower than at the beginning of the year. That said, an overall growth of 28.5% is excellent, and order books as well as backlog are still strong. The complete stop of business with Russia has had some impact, so that a 1:1 comparison is not quite possible. In a nutshell, we are happy with the numbers, but not with the fact that we could not satisfy the full demand of our customers. When the situation will finally normalise is hard to say as it depends on too many intrinsic and macro-economic factors,” Hermann Reiter, chairman of DMASS in a press release.
Semiconductors
DMASS says that semiconductors remained the driving force in Q2’s growth. Germany grew by 38% to EUR 852 million, Italy by 39% to EUR 297 million, France by 43.4% to EUR 215 million and the UK by 26% to EUR 212 million. Eastern and Northern Europe ended almost in lockstep with 36.8% and 37.1% growth (to EUR 559 million and EUR 248 million respectively). Russian sales came to an almost complete halt, as most Western organisations have shut down their operations there.
From a product perspective, the growth rates were distributed much wider, from a meagre 6% growth for Optoelectronics to a whopping 74% in Programmable Logic. While specialties like Flash-Memories, Other Logic (ASSPs) and Programmable Logic literally went through the roof, Opto, Power, Discretes ended up with way below-average growth. Analog and MOS Micro as the biggest product groups came in slightly below average, but still at over 30%.
Analog grew by 31.3% to EUR 870 million, MOS Micro by 30.4% to EUR 603 million, Power by 18.5% to EUR 345 million, Memories by 63.7% to EUR 351 million, Opto by 6% to EUR 238 million, Other Logic by 71.4% to EUR 186 million, Programmable Logic by 74.4% to EUR 198 million, Discretes by 21.6% to EUR 174 million and Sensors (incl. Actuators) by 32.8% to EUR 90 million.
Interconnect, Passive and Electromechanical Components
Interconnect, Passive and Electromechanical (IP&E) components grew during the second quarter, but at a slower pace than Semiconductors, suggesting a faster return to normal in that specific space.
Last quarter’s EUR 1.51 Billion (+19.6%) split as follows: Germany grew by 25.4% to EUR 393 million, Italy by 20.1% to EUR 170 million, France by 17.4% to EUR 135 million, UK by 18.4 to EUR 143 million and Eastern Europe by 21.2% to EUR 199 million. Electromechanical products, including Interconnect, represented the biggest product group, with EUR 808 million (+19.8%), followed by Passives with EUR 616 million (+18.6%) and Power Supplies with EUR 87 million (+25.5%).
“While we hope the overall supply situation gets better, some structural shortages will remain beyond 2022, as we keep hearing from the market. What is more worrying, are the mid-term outlook and the massive challenges on the economy: Russian attack on Ukraine, energy crisis, inflation, economic slowdown globally, climate crisis – the multiplication of these may lead to very difficult market conditions. Even for an industry like ours that for many decades has benefitted from over-proportional growth, due to the pervasive and innovative power of our technologies. The next quarter will definitely show which direction the market will go for some time to come. Nevertheless, long-term we are optimistic for the electronics industry to continue to make a difference,” Chairman Hermann Reiter concludes.
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