Situation of the French semiconductor market in the 4ᵗʰ quarter of 2020
Paris, March 22, 2021 – According to Acsiel Alliance Electronique, the rebound of the French semiconductor market was confirmed in the fourth quarter of 2020 with sequential growth by 13% (including Distribution sales), to 411 million euros, following growth of 7% in the third quarter. On an annual basis, this represents a contraction of 8% compared to the fourth quarter of 2019, but it is a marked improvement compared to the low point of the cycle reached in the second quarter at -25% year on year.
The French market was hit hard by the effects of the rigorous lockdown in spring 2020, first and foremost the sudden drop in direct sales to the automotive sector (-38% in the second quarter). The market presents a marked V-shaped recovery profile, almost returning to the level of turnover of the first in the second half.
Evolution by quarter of the French market since 2010, in index, in annual moving average – Source #ACSIEL
The main drivers of growth in the fourth quarter were direct sales to the automotive and defense/space segments which thus reached historically high levels, and to a lesser extent sales through the distribution channel which are mainly oriented towards the sector industrial. Seen from the perspective of product families, analog integrated circuits with +43% accounted for more than half of the growth in direct sales, correlating with strong demand from the automotive and defense/space sectors.
In 2020, according to Acsiel Alliance Electronique, the French semiconductor market fell by 11% to 1.575 billion euros, affected by the drop in industrial activity due to the health crisis, like the European market which declined 8% in euros according to the WSTS. In France, the drop was 8% for direct sales to end customers and 18% for distribution sales.
Among the major product families listed by Acsiel, there was a sharp contraction in direct sales of MOS Logic (-22%) and Discrete (-29%) circuits. The Sensors & Actuators (-5%) and MOS Micros (-7%) were relatively less affected. Sales of Analog circuits increased by 9% thanks to the very strong rebound in the second half.
Each year, Acsiel Alliance Electronique reallocates distribution sales, i.e. 31% of the market in 2020, to each major application segment. The French market is largely dominated by the automobile and industrial sectors. In 5 years, these 2 market segments have together gained 4 points and today represent 71% of the French market; The Aeronautics/Space/Defense sector is the 3th sector which has progressed and represents 10% of the market in 2020.
French semiconductor market in 2020, breakdown by major application segments – Source #ACSIEL