An unusually strong sales growth in the traditionally weakest quarter helped the European semiconductor distribution industry to significantly reduce its decline of earlier quarters.

According to DMASS (Distributors’ and Manufacturers’ Association of Semiconductor Specialists), the 4th quarter of 2005 grew by 5,7% over Q4/2004 to semiconductor distribution sales of 1,13 Billion €. The full year ended with sales of 4,56 Billion €, 2,85% lower than in 2004. (Notably, Eurodis’ submission is missing for 6 months. No reconciliation was possible. As of Q3/2005, Eurodis was not included as a DMASS member anymore.)  

Georg Steinberger, Chairman of DMASS, stated: “The positive 4th quarter saved 2005. Also taking into account the negative impact of Eurodis demise from the market, 2005 declined far less than the entire industry has anticipated. But nevertheless, 2005 was driven by uncertainties and weak demand and certainly will be recorded as a transition year. The outlook is not negative, though, with strong billings seen from the members, and a weak year to compare with (2005), 2006 will show at least a strong start. Whether it will be substantial growth or just corrective effects remains to be seen. But there are clear similarities to 2004.”