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Surplus semiconductor inventories linger through '07

Posted: 15 Jan 2007 ?? ?Print Version ?Bookmark and Share

Keywords:semiconductor inventory? IC surplus? semicon surplus? chip surplus? semicon?

Surplus semiconductor inventories rose again in the Q4 of 2006, meaning that excess stockpiles are likely to linger through 2007, according to a report from iSuppli Corp. Total excess chip inventory swelled to $4.3 billion in Q4, up 4.9 percent from $4.1 billion at the end of Q3 2006, the research firm said.

''The 4.9 percent increase in excess semiconductor stockpiles conforms to iSuppli's forecast, and does not mark a significant worsening of the surplus inventory situation,'' said Rosemary Farrell, analyst with iSuppli, in a statement. ''While rising levels of excess inventory are a concern for the global semiconductor industry in 2007, they are not sufficient to derail market growth.''

Indications of rising inventory come amid signs of the start of a seasonal slowdown for the semiconductor market and the larger electronics industry.

"Chip suppliers in the fourth quarter experienced slowing orders for semiconductors for 3G wireless handsets and for high-end computers, adding to weakness already seen in some segments of the networking and wired communications segment," according to iSuppli. "Furthermore, overproduction of LCD televisions added to excess stockpiles of related chips during the quarter.''

- Mark LaPedus
EE Times




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