Situation of the French semiconductor market at 1st quarter 2024

Paris, May 30, 2024 – The French semiconductor market contracted by 4% in the first quarter compared with the previous quarter, to €590 million, according to Acsiel Alliance Electronique. This decline is comparable to that published by the WSTS for the European market as a whole. Year-on-year, the French market is down by 18%.

Reflecting the economic downturn in the first quarter of 2023, the market’s year-on-year moving average curve continues to fall, having reached an all-time peak in the second quarter of 2023 (see index in attached graph).

The downturn in the market at the start of the year was due in no small part to sales to distributors (-6%). Among direct sales to end customers, down by 3%, we note a cyclical downturn in billings to the Aerospace/Defense segment, following three quarters of strong growth. The outlook in this sector, particularly for defense electronics, remains very favorable due to the international economic climate. Smart card sales also fell back after two quarters of growth. Conversely, direct sales to the industrial segment, which had fallen off sharply in the second half of 2023, have started to rise again. The rebound in direct sales to the automotive sector observed at the end of 2023 was confirmed in the first quarter.

While these results are encouraging in some respects, manufacturers are cautiously optimistic for the months ahead. Excess inventories remain in the industrial segment, and growth in the automotive sector is likely to continue at a moderate pace.

Quarterly trends in the French market since 2010, in indexes, annual moving average – Source #ACSIEL