News and New Products

European Distributors See Chip Sales Turn Up

By Richard Wilson -- Electronics Weekly, 2/22/2006

Judging by the level of chip sales through distributors, the European semiconductor industry had a promising end to 2005, which has carried over into a good start to the year.

Unusually strong sales growth in the traditionally weakest quarter, said European industry body DMASS, led to an increase in Q4 distribution sales of 5.7 percent over the same quarter in 2004.

“The positive fourth quarter saved 2005. Also taking into account the negative impact of Eurodis’ demise from the market, 2005 declined far less than the entire industry had anticipated,” said George Steinberger, chairman of DMASS.
 
The closure of Eurodis during the year meant its sales figures were not included for the last six months.

According to DMASS, the outlook for this year is positive, with strong billings from members pointing to a strong start to the year.

“Whether it will be substantial growth or just corrective effects remains to be seen. But there are clear similarities to 2004,” said Steinberger.

The French market suffered the greatest decline in Q4, while the U.K. market was up 2.1 percent to $166 million (140 million euros) for the quarter. The Russian market grew by 29 percent.

Electronics Weekly is the London-based sister publication of Electronic News.