The European semiconductor distribution industry displayed unusual strength in the last quarter of 2014, ending the year with a healthy growth rate, according to DMASS, the Distributors' and Manufacturers' Association of Semiconductor Specialists. In its latest report, the industry group reported Q4 sales grew by 10.3% to €1.57billion, with sales for the full year reaching €6.34bn, an increase of 7.7% on 2013.
Georg Steinberger, chairman of DMASS, commented: "It is always good to see predictions being beaten by the reality. DMASS members did well in an increasingly steady business year and leveraged their regional strength. The 2014 results show healthy growth across the board, with very few problem zones." Sales in the UK and Ireland in Q4 grew by 12.3% to €135million.
According to Steinberger, the distribution industry has proven resilient to the overall economic slowdown in Western and Southern Europe. "This means there is a lot of market dynamics driven by innovation, rather than by macro economic effects. Distribution is not about selling commodities, but about creating demand for complex technologies. Double digit growth mainly happens with more sophisticated products, where system knowledge or software expertise are required, as well as engineering support."
Market growth was driven by RF, MOSFETs, LEDs, NAND flash and 32bit MCUs. While demand for power devices grew by 10.5% to reach €639m for the year, programmable logic sales declined by 3.1% (€484m).
Author
Graham Pitcher
Source: www.newelectronics.co.uk