Situation of the French semiconductor market at 1st quarter 2016

Paris, June 1st, 2016 – For the first quarter of 2016, the total market, including OEM and retail sales, is estimated at €503.5 million, virtually equivalent (-0.8%) to the previous quarter, but down -1.8% year-on-year.

The breakdown of sales in France between the two channels of direct sales to OEMs and distribution sales was 71.4% and 28.6% respectively; quarter-on-quarter, there was a -6.4% drop in direct sales, while in the latter there was a +16.7% increase. (€143.9m vs. €123.3m in Q4 2015).

Given the rather pessimistic estimates made by some analysts in recent times, it’s clear that semiconductor manufacturers and suppliers in France have managed to stay on course…. Here’s hoping they can hold on for the next few quarters.

By product family, it is interesting to note that growth in the French market is similar to that forecast for the European market, for all three families: discrete semiconductors (including Optoelectronics and Sensors), Analog and Digital Mos memories.

By market segment, the three dominant segments remain unchanged: Automotive – Industrial and Mil-Aero and Chips for inserters.

Automotive semiconductor sales, representing 37% of the total with sequential quarterly growth of 3%, should continue to grow throughout 2016 and 2017, thanks to the increasing pervasiveness of electronics in vehicles to make them ever more autonomous and intelligent, not forgetting communication between automobiles and road infrastructures.

Finally, it’s worth noting the growing weight of sales in the Industrial and Military Aerospace segments (34% of total sales), the area that saw the strongest sequential growth (€116.6m in 1Q16 versus €103.0m in 4Q15).
Let’s hope that French companies will be able to take advantage of the many opportunities emerging in these two segments.