Featured Articles

Broadwell to be faster than Skylake-S in desktop

Broadwell to be faster than Skylake-S in desktop

Intel will do something that it never did before. It will release two processor generations at once in the desktop space.…

More...
ARM’s signs off on 64 bit ARMv8-A

ARM’s signs off on 64 bit ARMv8-A

British chip designer ARM has just signed off its 50th licensing agreement for its ARMv8-A technology, which includes support for 64-bit…

More...
Intel Business vPro market divided into 7 categories

Intel Business vPro market divided into 7 categories

Just a few years ago we had two market segments for business users. We had desktops and notebooks and now Intel…

More...
GTA 5 will make November release

GTA 5 will make November release

While we have continued to hear that Grand Theft Auto V for the Xbox One, PlayStation 4, and PC will not…

More...
Aerocool Dead Silence reviewed

Aerocool Dead Silence reviewed

Aerocool is well known for its gamer cases with aggressive styling. However, the Dead Silence chassis offers consumers a new choice,…

More...
Frontpage Slideshow | Copyright © 2006-2010 orks, a business unit of Nuevvo Webware Ltd.
Wednesday, 21 March 2012 11:27

Chipmakers start to reduce their inventories

Written by Nick Farrell



Good for them, not so hot for us


Beancounters at iSuppli say that the amount of products being stored in the warehouse by chip suppliers are expected to decline by 0.5 percent in the first quarter. While this is bad news for customers, because it means that prices are likely to rise,  it does  provide some hope that market conditions are improving.

The IHS iSuppli Inventory Market Brief report said that because of slow demand and continued excess production, average global semiconductor stockpiles held by chip suppliers rose in the third quarter. Fortunately demand is predicted to rise in the first quarter, drawing down stockpiles to something a little more reasonable. The report said that the end of  2011 proved disappointing from both a revenue as well as earnings standpoint.

Global semiconductor revenue declined by 2.8 percent compared to the fourth quarter of 2010 as customer orders declined. Meanwhile, semiconductor suppliers struggled to balance their factory utilization levels against the drop in demand, leading to the rise in semiconductor inventories, the report said. Semiconductor inventories in the fourth quarter of 2011 were at their highest level since the first quarter of 2001. Excess inventory can represent a challenge for the semiconductor, particularly in times of declining demand, causing prices to decline and resulting in factories reducing their manufacturing.

But semiconductor suppliers are projecting a resumption of demand in the first quarter and global macroeconomic indicators point to a healthier outlook. These factors are raising optimism among semiconductor suppliers that better days are ahead for the industry.

Nick Farrell

E-mail: This e-mail address is being protected from spambots. You need JavaScript enabled to view it
blog comments powered by Disqus

 

Facebook activity

Latest Commented Articles

Recent Comments