Paris, June 19, 2023 – The Acsiel electronics barometer has been aggregating quarterly sales in the electronics sector since 2017 in France.

Two indices make up this barometer:

• one indicates sales linked to electronic components (semiconductors, passives, printed circuits, connectors) and consumables (solder pastes, flux, accessories) intended for industry
• the other refers to sales related to electronic test and measurement equipment, electronic card production equipment.

The College Equipment & Services and Test & #Acsiel Measurements has just finalized the barometer for the 1st quarter of 2023.

> Electronic components and consumables

Analysis

• In the first quarter of 2023, sales of electronic components (semiconductors, passives, printed circuits and connectors) and consumables in France continued the dynamic that has been at work since the first quarter of 2022.
• The Acsiel index of electronic components and consumables for the first quarter is up 5% compared to the fourth quarter of 2022 and 21% year-on-year.
• The fundamentals of national electronic production have remained solid thanks to the predominant weight of the automobile and industrial sectors which determine a majority share of activity. These two sectors which are structurally growing have protected the French semiconductor market from the recession observed in other regions, notably in Asia, this being mainly caused by the slowdown in production oriented towards the general public (firstly PC and smartphone).
• In addition to the automotive and industrial sectors, demand from the aeronautics/space/defense and railway sectors has enabled connectivity to benefit from very sustained quarterly growth (+18%). Printed circuits and passive components also benefited from this favorable market environment.
• Consumables intended for industry, particularly through the network provided by SMEs and ETIs in electronic subcontracting, saw their sales jump at the start of the year.
• The high level of stocks in certain sectors could cause a slowdown in growth in the short term, but the trends in final demand on the domestic market remain well oriented.

> Test and measurement equipment, production machines

Analysis

• In the first quarter of 2023, the capital equipment index recorded year-on-year growth of 16% but sequential growth of only 2%, which conceals differentiated orientations, according to business surveys carried out by Acsiel.
• For test and measurement equipment, quarterly growth was positive, contrary to seasonality, after a decline in the fourth quarter itself following very strong growth in the third. The T&M market is currently driven by automotive, industrial and aerospace & defense. In the field of telecommunications, the impact of 5G technology, for its ability to serve new needs such as health, mobility or productivity, has yet to come; a later schedule than anyone could have hoped for, but still as promising. The short-term outlook is a little less good. On the other hand, let us remember that investments in measurement means are promising and expected to grow steadily in France with the construction of electric car and battery factories.
• For production machines, intended in particular for electronic subcontracting, the economy remained well oriented in the first quarter even if we were able to observe a slight decline in invoicing (-5% according to our survey), largely explainable driven by strong double-digit growth in the fourth quarter. The outlook has deteriorated for the second quarter on both the domestic and export markets, with a drop in orders and the sector’s confidence index.
• For these production activities of capital goods on national soil, the availability of a qualified workforce meeting the needs becomes a major issue. Already, recruitment difficulties are weighing on the growth of many companies. It is necessary for public authorities to take up the subject with the greatest determination to develop an action plan with manufacturers, otherwise this will irreparably obstruct the stated reindustrialization ambitions.