DMASS reports weak Q1/2008

DMASS, the Distributors’ and Manufacturers’ Association of Semiconductor Specialists, has reported a weak first Q1/2008, with EMEA semiconductor distribution sales declining 7.9% compared to Q1/2007. However, it cautions that against last year’s corresponding all time high quarter of European semiconductor distribution history, the drop was to be expected. Members achieved quarterly distribution revenues of 1.38billion Euro in Q1/2008, representing a decline of 7.9%. Against Q4/2007, sales were up 12.3%. But of the bigger sales regions, the steepest decline against last year’s Q1 occurred in the UK with -22.1% (117million Euro), followed by France (-11.4% to 114million Euro) and Italy (-9.8% to 183million Euro). Germany ‘only’ fell by 7.2% to 461million Euro, proving its resistance against the massive production transfer that has affected all of Western Europe. Benelux declined by -14%, Iberia by -11% and the Nordic Region by -5.6%. The winner was again Eastern Europe with +10.5% with a total of 162million Euro, led by Russia, Poland, Hungary and the emerging countries of Rumania, Baltic States, Ukraine, etc. “Of concern is without doubt the ongoing weakness of the markets in the UK and France,” stated DMASS chairman, Ian Bass. “While Italy and Germany recovered with +22% and +20% respectively against the Q4/2007 figure, the UK and Ireland only managed to exceed Q4/2007 by 2% and France by 12%. However, from a design perspective, those countries continue to be strong. Bass adds that the downturn on products in most cases is not driven by a lack of demand but by a continued erosion of the average selling prices. “We fully expect the price pressure will soften during the year,” he concluded. “From a market perspective, distribution customers in Europe continue to be world leaders in their fields, with high export rates and strong positions in fields like industrial, automotive and increasingly environmental technology. Europe is leading the development in those fields.” To strengthen its statistical representation of the European semiconductor distribution market, DMASS has added two new members, Maxim and Anglia.