Situation of the French semiconductor market in the 3ʳᵈ quarter of 2021

Paris, November 29, 2021 – The French semiconductor market continued to grow at an annual rate in the third quarter despite a decline compared to the previous quarter.

According to Acsiel Alliance Electronique, the market fell by 10% from one quarter to the next due to a 16% drop in direct sales to the end customer, while sales to distribution increased by 2%.

The decline in the market is largely linked to the shortage of certain families of semiconductors and other electronic components as well as various non-electronic materials which lead to production stoppages and can consequently lead to deferral of semiconductor orders. This economic phenomenon, which particularly affects the automobile industry, does not spare other sectors either and disrupts the entire value chain. In general, we are witnessing a decorrelation between customer demand and the capacity of semiconductor manufacturers to satisfy this demand, and as a result for several months the results of the French market have not faithfully reflected the underlying trends which remain well oriented .

From one year to the next, the French market grew by 15% in the third quarter of 2021 compared to the same quarter of 2020. Cumulatively over the first nine months of the year, growth is 19% compared to 2020 and 4% compared to 2019. The French market therefore exceeds its level before the health crisis. This positive trend is reflected in the annual growth as a moving average over 12 months which began to rise in the second quarter to 6% to reach 11% in the third quarter. On an annual moving average basis, the semiconductor market is at a level that has not been reached since the fourth quarter of 2019.

Evolution by quarter of the French market since 2010, in index, in annual moving average – Source #ACSIEL