German Distribution market in Q4/2020
February 15, 2021
German components distribution: Downturn stopped
FBDi Chairman Georg Steinberger: "This was a surprisingly positive end to a thoroughly bad year. The fact that we are now sliding into a supply crisis for components, with in some cases extreme bottlenecks and equally significant price increases by many manufacturers, is due to two significant circumstances: First, many market participants behave too digitally and reduce their inventory at the slightest sign of a crisis, only to immediately go into panic action in the opposite case. And secondly, Europe is a sub-strategic region whose total component requirements correspond to those of a single large contract manufacturer in China. The fact that, in the event of shortages, large smartphone giants are supplied in a different way than the multitude of European OEMs and also differently than the "system-critical" automotive industry should come as no surprise to anyone who has read the FBDI's market statistics for the past 15 years."
Steinberger: "We know of many programs from the past that have not changed the current situation. The semiconductor industry thrives on innovative chip designs and intellectual property, on know-how and billions invested in groundbreaking manufacturing technology, and last but not least on huge volumes that usually only come from large platforms (smartphones, tablets, laptops, etc.) and thus global key customers. 50 billion euros in funding sounds nice, but where will the money go? If this is managed in a similar way to Corona aid, then good night."