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IHS report signals potential recovery in semiconductor demand
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Semiconductor stockpiles held by chip suppliers increased during the first quarter of 2012, but the rise in inventory for a second straight quarter was driven by the anticipation of higher demand from customers, according to an IHS iSuppli report.
The Inventory Insider Market Brief stated that semiconductor inventory as a percentage of suppliers' revenue amounted to 50% in the first quarter, up from 47.8% in the fourth quarter last year and from 46.1% in the third. But while inventory grew, the report showed that reasons behind the expansions and what they implied for the market couldn't be more different.
"In the fourth quarter, inventory rose among suppliers because of uncertain macroeconomic conditions such as the sovereign debt crisis in Europe, leading to an overall decline in the worldwide demand for semiconductors," said Sharon Stiefel, semiconductor inventory analyst at IHS. "And while inventory rose during the fourth quarter for semiconductor suppliers, chip stockpiles fell at the same time among customers, indicating a paucity in demand."
She continued: "In contrast, the higher inventory numbers among semiconductor suppliers for the first quarter of 2012 represent a signal of better things to come. There was an increasing level of inventory both among chip suppliers and customers, indicating that both the supply and demand sides of the business believe that the environment in the electronics market has turned positive."
