Q3 semiconductor distribution, 4.4% decline

The report shows a negative 4.4% growth to €1.5billion, compared to Q3 2010. In the first nine months of 2011 DMASS reported consolidates sales of €5.02bn (+13.2%). Georg Steinberger, chairman of DMASS, said: "While 2011 is still set to be a growth year after all, the decline in the summer quarter definitely shows that the overheated market comes back to normal. The next few quarters will be challenging as the comparable basis in the record years 2010 and early 2011 are extremely high. It remains to be determined whether or not the current weakness was just an inventory correction and therefore short term." Eastern Europe was the only region to grow in Q3 (15.5% to €228million). With -3.7% to €531m, Germany held strongly against the current weakness in Western Europe, as did France with -5.2% to €104m. UK & Ireland declined by 7.5% to €128m and Italy by 11.1% to €136m. All other regions declined between 7.5% (Nordic) and 19.1% (Austria). "While the majority of Eastern European countries are low cost manufacturing driven, Russia is the only one genuinely growing out of its own market demand," added Steinberger. "Interestingly, the Baltic countries play a more prominent role now with manufacturing shifts from Scandinavia. As already confirmed in previous quarters, the focus of distribution on design intensive products is apparent throughout 2011. Within the strongest product areas, high tech products growth like in high end micros, advanced analogue and power supersedes the growth in commodities. This contradicts the standard belief of many customers of distributors being merely fulfilment houses of manufacturers." DMASS only reports industrial semiconductor sales, defined as all semiconductors, excluding the pc channel.