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Electronics Production | August 02, 2006

Intel Inventory Glut Looms Large<br>Over Electronics Supply Chain

Excess stockpiles of PC microprocessors and core-logic chipsets caused surplus semiconductor inventories in the global electronics supply chain to rise more than expected in the second quarter, according to new data from iSuppli Corp.'s Semiconductor Inventory Tracker service.
"Excess inventories have exceeded the worrying levels seen during the last semiconductor supply snafu in mid 2004. However, with most of the excess inventory restricted to PC- related chips, and mainly to a single supplier-Intel Corp.-the surplus stockpiles are not a major concern for the global electronics industry," said Rosemary Farrell, an iSuppli analyst.

Excess semiconductor stockpiles in the global electronics supply chain rose to $2 billion in the second quarter, up 77.6 percent from $1.1 billion in the first quarter. iSuppli had predicted a more moderate rise to $1.3 billion.

The figure below and attached presents iSuppli's quarterly estimate of surplus semiconductor inventory in the global electronics supply chain.
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