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Gartner Says Current Chip Inventory is Way Too High

By - Source: Gartner | B 24 comments

Gartner is concerned about high levels of inventory in the chip industry.

"The semiconductor industry entered the third quarter of 2011 with moderately high levels of inventory," said Gerald Van Hoy, senior research analyst at Gartner. "Current levels are too high given the weakening economic sentiment, and the industry must rein in production growth and take action to reduce accumulated inventory. We expect that these actions will occur during the next few quarters with production and sell-through expected to return roughly to balance by the second quarter of 2012."

Gartner said that the inventory correction is likely to begin in late 2011 and coincide with an already volatile economic environment in which average selling prices of semiconductors a "tracking" below trend levels.

"Excess inventory levels helped buffer the impact of the Japanese earthquake; however, now action should be taken to rationalize stock levels in the face of macroeconomic weakness," said Gartner analyst Peter Middleton.

According to Gartner, the industry will see "a moderate inventory correction during the next few quarters," which will drive overall semiconductor demand lower. On the positive side, the semiconductor inventory held by OEMs is still near historic lows and may buffer the decline in chip demand..

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  • 17 Hide
    yukijin , September 22, 2011 1:21 PM
    My name is Jimmy McMillan and i represent the "Current Chip Inventory is Too D@#M High" party.
  • 10 Hide
    gokanis , September 22, 2011 1:35 PM
    Isn't there being a glut of inventory good for us as the consumer? I understand that if there is too much, it can indicate sales may be slowing but that can help drive prices down. ***That guy is one creepy looking sucker.....
Other Comments
  • 17 Hide
    yukijin , September 22, 2011 1:21 PM
    My name is Jimmy McMillan and i represent the "Current Chip Inventory is Too D@#M High" party.
  • 10 Hide
    gokanis , September 22, 2011 1:35 PM
    Isn't there being a glut of inventory good for us as the consumer? I understand that if there is too much, it can indicate sales may be slowing but that can help drive prices down. ***That guy is one creepy looking sucker.....
  • 5 Hide
    madsbs , September 22, 2011 1:55 PM
    Yeah, he looks like he's about to ask you, why it's called a Royal with cheese
  • 6 Hide
    Anonymous , September 22, 2011 1:57 PM
    the prices will definitely be going down this christmas season. hold on to your undies ladies and gents, black friday will surely pull them down! :D 
  • 1 Hide
    utengineer , September 22, 2011 2:05 PM
    Why is he wearing gloves?
  • 0 Hide
    rantoc , September 22, 2011 2:36 PM
    utengineerWhy is he wearing gloves?


    He is related to Dr.No!
  • 1 Hide
    southernshark , September 22, 2011 2:36 PM
    http://www.gartner.com/AnalystBiography?authorId=13905

    That is a link to a real picture of Gerald Von Hoy, the guy quoted in the article. I have no clue who that is in the picture or why their photo is in this article.

    The beard is tight though.... and the gloves... very hip.
  • 0 Hide
    bak0n , September 22, 2011 2:44 PM
    Looks like a politician; or a member of the ACLU.
  • 2 Hide
    JamesSneed , September 22, 2011 2:53 PM
    Quote:
    http://www.gartner.com/AnalystBiography?authorId=13905

    That is a link to a real picture of Gerald Von Hoy, the guy quoted in the article. I have no clue who that is in the picture or why their photo is in this article.

    The beard is tight though.... and the gloves... very hip.


    I think you must not have seen the first post... the picture is Jimmy McMillan of the "The Rent Is Too Damn High Party". It should be obvious from the tittle why it was chosen for its tongue in cheek comedy. One of those things, if you have to explain it its not funny anymore.
  • 0 Hide
    slabbo , September 22, 2011 2:55 PM
    the guy in the picture is referenced in the first post. where have you guys been?
  • 0 Hide
    Kelavarus , September 22, 2011 3:06 PM
    For those who don't know who this is: http://www.youtube.com/watch?v=x4o-TeMHys0

    Jimmy McMillan, representative of "The Rent Is Too Damn High Party."

    President 2012 perhaps?

    EDIT: Aw, I lost the race. Oh well.
  • 0 Hide
    azgard , September 22, 2011 3:27 PM
    gokanisIsn't there being a glut of inventory good for us as the consumer? I understand that if there is too much, it can indicate sales may be slowing but that can help drive prices down. ***That guy is one creepy looking sucker.....


    Good for consumer ≠ good for business. Usually this is always 'bad' as it forces companies to drop margin's lower meaning less profit.
  • -4 Hide
    southernshark , September 22, 2011 3:41 PM
    slabbothe guy in the picture is referenced in the first post. where have you guys been?

    slabbothe guy in the picture is referenced in the first post. where have you guys been?



    I read the post, but I still don't get why Tomshardware put the picture there. I guess its funny to them... or maybe not.
  • 0 Hide
    crewton , September 22, 2011 3:58 PM
    When I read the title of the story I thought of the too damn high meme and giggled when I opened the story to see the picture. Tom's audience understands web culture which is why they put it there. You need to get in more :p 
  • 0 Hide
    neon871 , September 22, 2011 4:40 PM
    I seen that guy in the picture on TrueTV "The worldsDumbest partyers". He was one of the cast members not a partyer (all though he may be a partyer, just caught on film yet)I thought him to be a lil strange because of the gloves also. I think it is even stranger to see him on Tom's, who is he? Gerald Van Hoy?
  • 0 Hide
    neon871 , September 22, 2011 4:53 PM
    I googled Gerald Van Hoy looking a picture of him and got the link below. Now I think Gartner don't know one end from the other!

  • 0 Hide
    neon871 , September 22, 2011 4:58 PM


    Sorry here is the link, i don't know why it didn't upload
  • 0 Hide
    legacy7955 , September 22, 2011 4:59 PM
    The guy in the pic looks like the pastor from Obama's supposed Church.
  • 0 Hide
    neon871 , September 22, 2011 5:00 PM
    http://www.sify.com/topics/-Gerald-Van-Hoy/1.html

    the link button don't work?
  • 0 Hide
    robochump , September 22, 2011 6:02 PM
    Never trust a guy with a whacky beard, gloves on, and water bottles strewn all over!!!!
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