European semiconductor market recovery remains slow

"The first half of 2012 remains weak, relatively speaking, as records of the past do not count in a competitive environment. We are still facing a very quiet market today, with uncertainties around the overall economical situation in Europe," commented DMASS chairman Georg Steinberger. "Although the second half will be inevitably better in relative terms, 2012 won't be a growth year either, that much is clear. 2012 will end with a small minus, provided no macro economical problems occur." The report noted that Western Europe experienced 'disappointing' results but Eastern Europe proved resilient, with Romania, Israel and Russia growing in double digits. In Western Europe, France (-9.8%), UK (-10.3%), Benelux (-11.4%) and Iberia (-13.8%) reported a decline that was under proportional, while Germany (-21.9%) and Italy (-24.3%) dropped more than average. The top five countries in terms of sales were Germany (€472m), Italy (€139m), UK (€124m), France (€110m) and Russia (€65m). "Has production transfer finally reached Germany and Italy with the same force as it did a few years ago with the UK and France? It remains to be seen," added Steinberger. "Italy is a special case with its higher focus on low cost manufacturing, white goods and low cost equipment. Germany however might just have seen a certain weakness after two overheated years."