Situation of the French semiconductor market in the 2nd quarter of 2022

Paris, September 26, 2022 – The French semiconductor market continued to benefit from favorable economic conditions in the second quarter with sequential growth of 6% , at 571 million euros, according to Acsiel Alliance Electronique. This represents growth of 25% compared to the second quarter of 2021.

The evolution of the euro/dollar exchange rate had a positive impact on growth in euros in the second quarter but the dynamic remained strong in the major segments which structure the French market. Direct sales to end customers increased by 8% compared to the first quarter. Due to its weight of more than 40% of direct sales, the Automotive sector was the leading contributor to this growth with +11%. The Aeronautics/Space/Defense (+26%) and Smart card (+17%) sectors also had a notable positive contribution. Naturally, the dynamics of these market segments primarily boosted the growth of the Analog (+22%) and Microcontroller (+12%) product families.

Growth in the Industrial segment is largely driven by Distribution, of which it constitutes the majority share. In the first half of 2022, Distribution sales were 50% higher than those in the first six months of 2021. Over this same period, the French market as a whole grew by 17%, with remarkable increases for direct sales to the segments. Automotive (+16%), Aeronautics/Space/Defense (+29%) and Smart card (+8%).
In steady progression for six quarters, the French market index on a twelve-month rolling average has reached its highest level since the first quarter of 2016.

Demand for electronic components remains strong even as global inflation inevitably infuses the semiconductor value chain. In this context, in view of the results presented above, and based on the order/invoicing ratio (confidential) which emerges from its quarterly survey as well as on the findings of its members, Acsiel considers that the French market, which is very present in the automotive and industrial sectors, has not entered a significant easing phase although the general public market is starting to show signs of weakness.