Midway through the second-quarter reporting period, total chip inventory among the approximately 35 semiconductor component manufacturers tracked by iSuppli climbed to USD 9.6 billion, up a strong 9% from the 1Q/2010 (USD 8.9 billion). Likewise, average Days of Inventory (DOI) grew, increasing by about 4 days during the period to 73.2 days (1Q/2010: 69.3 days).

The attached figure shows iSuppli’s forecast of semiconductor inventory value—both in dollar terms and in DOI— starting from the first quarter of 2008 up to the second quarter of 2010.


This chart has a zoom-function.

Overall, however, the increase in inventory reflects a justifiable build, and the market researcher is not concerned over an inventory bubble. And with the market now less volatile, semiconductor companies gradually will be returning to more normal operating conditions and inventory levels over the next few quarters, iSuppli believes.