European chip distribution slumped in second quarter

September 02, 2019 //By Peter Clarke
European chip distribution slumped in second quarter
The European semiconductor distribution market declined by 1 percent to €2.32 billion in 2Q19, according to industry body DMASS Ltd.

The chip distribution billings slowdown was expected due to weaker bookings in prior quarters and is expected to continue for the rest of 2019.

The reasons for the slowdown include economic cycles within the industry – such as falling memory prices and overstocking – and external reasons – such as the US-China trade war and Brexit.

However, the picture at the country and regional level varies from double-digit percentage growth in smaller countries to double-digit declines in medium-sized markets such as Italy, Israel and Russia.

Among the major markets, Germany grew by 0.1 percent to €681 million, Italy shrank by 11.3 percent to €200 million, France dropped 3.9 percent to €155 million, UK (without Ireland) grew by 4.2 percent to €155 million, Eastern Europe by 4 percent to €406 million and Scandinavia by 3 percent to €207 million.

At the product level, analog products grew 1.5 percent to €687 million, microprocessors and microcontrollers shrank 5.6 percent to €455 million, power grew 2.6 percent to €258 million, memories declined 0.8 percent to €206 million and optoelectronics lost 8.4 percent to €203 million. While programmable logic dropped by 4 percent to €147 million other logic grew 19.3 percent to €137 million.

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