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Gartner Says Current Chip Inventory is Way Too High

"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..

  • yukijin
    My name is Jimmy McMillan and i represent the "Current Chip Inventory is Too D@#M High" party.
    Reply
  • gokanis
    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.....
    Reply
  • madsbs
    Yeah, he looks like he's about to ask you, why it's called a Royal with cheese
    Reply
  • 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
    Reply
  • utengineer
    Why is he wearing gloves?
    Reply
  • rantoc
    utengineerWhy is he wearing gloves?
    He is related to Dr.No!
    Reply
  • southernshark
    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.
    Reply
  • bak0n
    Looks like a politician; or a member of the ACLU.
    Reply
  • JamesSneed
    9311783 said:
    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.
    Reply
  • slabbo
    the guy in the picture is referenced in the first post. where have you guys been?
    Reply