Semiconductor inventory continues to climb in Q2

The total stockpile level for all semiconductor suppliers - excluding the volatile memory segment - is projected to rise to 81.5 days in Q2, up 1.5% from 80.3 days in Q2, according to the market research firm. With this increase, inventories will have risen during every quarter since the last three months of 2009. "Increases in stockpiles during the first quarter reflect efforts by semiconductor suppliers to rebuild inventory for products that were in short supply during the capacity crunch of 2010," said Sharon Stiefel, analyst for semiconductor intelligence at IHS. "Suppliers also are moving to strategically build for the higher demand expected later this year. In a fortuitous stroke of good timing, semiconductor component manufacturers were able to take advantage of the reduced demand environment during the seasonally slow first quarter to build their stockpiles." According to Stiefel, the Japan quake disaster in March will have a minimal effect on inventories throughout the electronics supply chain. For the remainder of the year, IHS sees inventory levels continuing to rise, thanks to steady consumer demand for smartphones, tablets and other consumer items.