Excess semiconductor inventory lower than expected in Q1
The worldwide electronics industry in the first quarter reduced its excess semiconductor inventories at a rate that was dramatically faster than expected-sending a positive signal for future chip-market growth, market research firm iSuppli says.
The value of surplus chip stockpiles in the electronics supply chain plunged to $500 million in the first quarter, down 51.5 percent from $1.03 billion in the fourth quarter of 2004, according to iSuppli. The firm previously predicted that total excess semiconductor stockpiles in the first quarter would decline by 24 percent to reach $780 million.
"The reduction of excess semiconductor inventory in the historically slow first quarter of the year is undeniably a positive development for the global chip industry," said iSuppli analyst Rosemary Farrell.
"Better-than-average sales of bellwether semiconductor products including microprocessors, Digital Signal Processors (DSPs), discrete devices, high-performance analog parts and power-management chips helped reduce excess inventories in these areas," Farrell added. (THG)
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Wolfgang Gruener is an experienced professional in digital strategy and content, specializing in web strategy, content architecture, user experience, and applying AI in content operations within the insurtech industry. His previous roles include Director, Digital Strategy and Content Experience at American Eagle, Managing Editor at TG Daily, and contributing to publications like Tom's Guide and Tom's Hardware.