Semiconductor stockpiles rise for seventh quarter in a row
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Semiconductor inventory levels among chip suppliers are expected to rise for the seventh consecutive month in a row as the industry rebuilds depleted stockpiles and prepares for expected increases in demand, according to IHS iSuppli.
In a recently published report, the company said total stockpiles for all semiconductor suppliers – excluding memory – are set to rise to 81.5 days in the second quarter of 2011, an increase of 1.5% over the first quarter. This continues the trend for inventories to rise every quarter since the end of 2009.
According to the market analyst, increases in inventory during the first two quarters of the year reflect efforts by the industry to rebuild inventory for products that were in short supply during 2010. But it also believes that suppliers are build stocks in order to meet expected higher demand later this year.
Meanwhile, IHS iSuppli says overall demand for aluminium capacitors has slowed as the pc and handset markets have cooled off. Most production is back online after the Japanese earthquake and inventory is returning. One exception to slowing demand is the automotive market, where lead times continue to be long. Demand in the consumer market is expected to ramp up again in August 2011.
* Due to space restrictions, New Electronics is unable to publish its Marketwatch data in the 26 July issue. However, the information can be accessed by clicking on the link below.
