Hermann Reiter, President of DMASS: "Given that we have experienced three years of growth with strong allocation across most component segments, the current slowdown is not unexpected. With inventory levels still high, reserves are currently tight. 2023 is likely to end slightly positive with strong revenue; 2024 will require patience until a substantial shift in demand occurs. In the long term, our outlook remains positive, particularly for distribution in Europe and all the industrial segments we serve."
Semiconductors (Q3):
With total revenues of €3.65 billion, semiconductors saw a slight decline of 3.2%, still at a healthy level. Regionally, only a few countries or regions remained positive (UK, Germany, Turkey), while the rest experienced a slowdown. From a product perspective, most product groups registered negative growth, with the exception of MOS Micro, Programmable Logic, and Other Logic (see charts).
Interconnection, passive, and electromechanical components (Q3):
In IP&E, the slowdown that had been underway since the beginning of 2023 continued in Q3. The IP&E distribution market declined by 11% to €1.5 billion in the summer quarter. Regional differences were much more pronounced than in the semi-annual quarter: among the larger countries, Germany was the most affected, with a decline of almost 17%, while France only fell by 2.3%. The only country with positive growth was Turkey, with a 28% increase. Regarding products, power supplies were the least affected, while electromechanical components (including interconnection) declined by 9.3% and passive components by 14.4% (see tables).
President Hermann Reiter: "In recent years, the term 'unprecedented times' has been used very often to describe an anomaly in a truly positive market like that of electronic components. I am quite certain that we will continue to see more unprecedented and unpredictable times in the future. However, despite all the current geopolitical challenges and the potential disruptive forces on the horizon, the long-term outlook for our sector as a whole not only remains positive, but we will witness unprecedented dynamics, driven, among other things, by Artificial Intelligence and Quantum Computing."
