Electronics Production |
iSuppli Cancels inventory "Yellow Alert"
Two quarters after building up more than $1.6 billion worth of excess chip stockpiles, the global electronics industry appears to be digging itself out of its inventory hole, according to mid-quarter channel checks from iSuppli Corp.'s Semiconductor Industry Tracker service.
The global electronics supply chain has made significant progress in reducing excess semiconductor inventories and is on track to digest the surplus completely by the end of the second quarter.
Semiconductor suppliers, which are holding the majority of the excess stockpiles, have continued to reduce their days of inventory in the first quarter. iSuppli believes that the supply chain by the end of the first quarter could achieve a 24 percent reduction in total excess chip stockpiles to $780 million. Due to these developments, iSuppli is canceling its "yellow alert" for excess chip inventories. iSuppli had sounded the alert in the third quarter of 2004 after excess inventory in the supply chain jumped by 103 percent compared to the second quarter. This includes inventories held by semiconductor suppliers as well as by other members of the electronics supply chain, such as OEMs, contract manufacturers and distributors.
