This is according to the latest report from DMASS Europe eV, a European non-profit organization that represents 88% of European DTAM components.
Both Northern and Central Europe surpassed the 30% mark, led by Ireland (+55.4%) as the fastest-growing market, while Germany, the region's largest economy, posted an encouraging 36.3%. Israel's exceptional surge (+83.8%) reflects strong demand in the aerospace, defense, and AI and cloud applications sectors, which are particularly dynamic within the Israeli ecosystem. The Nordic countries (+35.9%), Austria (+37.5%), and the Benelux countries (+30.2%) also recorded solid double-digit increases.
Regarding products, the second-quarter rebound reflects a broader industrial recovery across the European manufacturing base. Demand from the automation, energy, and infrastructure sectors remained the main driver of growth, supported by renewed investment in digital and industrial modernization. The memory segment (+189.0%) stood out with extraordinary growth, also driven by prices, reflecting both global supply constraints and speculative activity. Other areas began to show the first signs of tightening and cost inflation, suggesting that the current expansion phase could soon face capacity and price pressures stemming from global supply constraints and speculative activity.
All components consolidated by region (Q2):
Semiconductors (Q2):
European semiconductor shipments surged to €3.2 billion (+40.2%) in Q2, driven by a combination of price effects, a rebound in industrial investment, and strong demand from the aerospace, defense, and AI and cloud application sectors. The most dynamic markets were Israel (+105.7%) and Ireland (+84.4%), reflecting Israel's rapid expansion in the aerospace and defense, as well as high-tech and data center sectors. The DA-CH region also performed well—Germany (+45.1%), Switzerland (+44.7%), and Austria (+51.8%)—while some areas of Southern Europe, including Italy (+22.5%) and Iberia (+22.6%), remained weaker.
In terms of products, memory (+189.0%) led the growth, driven by global capacity bottlenecks and price increases now being seen across the European distribution chain. Discrete devices (+26.5%), sensors and actuators (+15.0%), analog components (+28.8%), and power components (+13.4%) continued to expand steadily, while optoelectronics (+1.6%) and standard logic (+8.2%) remained under pressure from inventory reductions and a slowdown in the introduction of new designs.
Overall, the market shows strong, albeit uneven, momentum. The outlook remains positive, supported by automation and government investment in European technological independence, although tempered by geopolitical uncertainty, energy price volatility, and shifts in trade flows.
Interconnection, passive, and electromechanical components (Q2):
European IP&E shipments reached €1.8 billion (+19.3%) in Q2, reflecting a more even recovery across Europe.
The strongest growth came from Israel (+41.9%), Turkey (+27.1%), Other (+25.6%), and Eastern Europe (+25.5%), while the core market, Germany (+21.0%), posted solid growth. In contrast to the semiconductor trend, Ireland (+11.6%) lagged behind.
In terms of products, the passive and active components sector offers a clearer measure of real industrial demand in Europe, as it remains less affected by global price speculation and AI-related volatility. Growth in passive components (€644.5 million, +20.2%) and electromechanical components (€1 billion, +18.8%) reflects steady expansion driven by applications rather than inflationary effects. The only notable exception is tantalum capacitors (+35.6%), where AI-induced shortages have begun to impact prices and availability.
Overall, IP&E confirms Europe's underlying industrial strength: a steady recovery, driven by demand and determined by the real needs of applications.
President Hermann Reiter concluded:
“The second quarter further reinforced the positive momentum established in the first quarter, with almost all regions posting substantial gains in key product groups.
At the same time, we must consider the geopolitical context: Orgalim explicitly warns that rising tensions, particularly the conflict with Iran and its potential impact on Europe’s energy infrastructure, pose a serious risk of external disruption.
The task now is to translate this momentum into sustained progress, greater resilience, and a stronger strategic position, while reducing supply chain fragility, managing energy market volatility, and shaping a competitive and future-proof electronics landscape.”
