June Highlights:
As we look back on June, we observed a predictable dip in global design and sourcing activities across the Design-to-Source Intelligence (DSI) network, aligning with seasonal trends. Design activities experienced an 11% month-over-month decrease, but there was growth with a 7% year-over-year increase in engineer activity. Notably, the United States, China, India, Germany, South Korea, and Spain displayed year-over-year growth in design activities, providing encouraging insights for these regions. On the sourcing front, activities dropped by 7% month-over-month and a substantial 26% year-over-year decrease. All regions saw declines, with the Americas and EMEA regions showing the most significant reductions in buyer activities.
Q2 2023 Recap:
Taking a look at the second quarter of 2023, global design activities showcased resilience with an 8% growth compared to Q1 and a 5% increase year-over-year, surpassing seasonal expectations. Across all regions, signs of activity growth were evident, and the EMEA region performed well, growing 1% quarter-over-quarter and 7% compared to Q2 2022. This progress is noteworthy as the EMEA region typically experiences a decline in design activities during this quarter. On the sourcing side, Q2 faced challenges, witnessing a 13% decrease compared to Q1, and a substantial 26% drop year-over-year. All regions saw reductions in sourcing activities, with APAC showing the strongest performance with only a 5% decrease compared to Q1 and a 24% decrease compared to 2022. Integrated circuits (ICs) and discrete semiconductors were among the components with the largest declines in buyer activities.
Q3 2023 Outlook:
Looking ahead to the third quarter of 2023, we anticipate a decrease of 5% to 10% in both global design and sourcing activities compared to the previous quarter. As we navigate through these fluctuations, staying informed and responsive to changing trends will be crucial for all industry players.