Printed Circuit Design & Fab Online Magazine - Report: German Electronics Market Down 4%

FRANKFURT – ZVEI reported that the German electronic components and systems sales would drop by 4% to Euro 16.4 billion ($20.89 billion) for 2008. ZVEI forecasts a further decline of 1% for 2009. Weak semiconductor sales (down 8% for the year)played a big role in this decline because semiconductor sales account for 60% to the electronic component market in Germany. ZVEI market analysts are optimistic of a rebound in the semiconductor market in 2009.

Chip sales last year dropped more than 4% to Euro 10.7 billion ($13.63 billion). This year German semiconductor sales are further expected to decrease by 8% to Euro 9.8 billion ($12.48 billion). The telecommunications segment that dropped 23% in sales in 2007 is expected to suffer another 36% loss in 2008 according to ZVEI.

The domestic printed circuit board market posted a 2.5% increase in sales to Euro 1.5 billion ($1.91 billion), according to the Printed Circuit Board Association (VdL). The industry is expected grow 1.3% overall in 2008.

The falling rate of exchange between the Euro and US dollar is also impacting sales.