Situation of the French semiconductor market in the 3rd quarter of 2022
Paris, December 5, 2022 – The trend remained positive in the French semiconductor market in the third quarter with sequential growth of 3.3%, at 590 million euros, a record level, according to Acsiel Alliance Electronique. Year-on-year, growth amounted to +44% in the third quarter of 2021, a clear acceleration after +25% in the second quarter of 2022 and +10% in the first. Over the last twelve months, the French market has crossed the threshold of 2 billion euros (at 2.18 billion euros) for the first time in seven years and it is now certain that this threshold will also be largely exceeded on the whole of 2022. The French market index as a rolling twelve-month average has been growing constantly for seven quarters (see graph below).
Over the first nine months of 2022, the market grew by +25%, with sales through the distribution channel up by +50% and growth in direct sales to end customers at +14%. These are driven by automotive (+24%), industrial (+14%), aeronautics/space/defense (+30%) and smart cards (+17%), in order of contribution to growth.
The very strong dynamics of distribution, for its part, can be attributed to the combination of several factors such as: supply diversification strategy by certain large equipment manufacturers for greater flexibility, reaction and adaptation to shortages, and even more vigorous growth in semiconductor sales for manufacturers through distribution than direct sales. Acsiel recalls that the “Industrial” segment represented two thirds of sales through distribution and 38% of the total market in 2021.
While it is true that part of this growth is most likely due to late deliveries due to the shortage, the outlook remains good for the fourth quarter and at least the first half of 2023, and in the longer term for all these sectors which constitute the essential backbone of national electronic production. Industrial relocation efforts and the number of announcements of new production units encourage optimism for the French electronic components market.
