Thursday, January 11, 2007
Surplus semiconductor inventories rose again in the fourth quarter of 2006 to $4.3 billion, an increase of 4.9 percent over the previous quarter, according to iSuppli Corp.
''The 4.9 percent increase in excess semiconductor stockpiles conforms to iSuppli's forecast, and does not mark a significant worsening of the surplus inventory situation,'' said Rosemary Farrell, analyst with iSuppli, in a statement. ''While rising levels of excess inventory are a concern for the global semiconductor industry in 2007, they are not sufficient to derail market growth.''
Indications of rising inventory come amid signs of the start of a seasonal slowdown for the semiconductor market and the larger electronics industry.
"Chip suppliers in the fourth quarter experienced slowing orders for semiconductors for 3G wireless handsets and for high-end computers, adding to weakness already seen in some segments of the networking and wired communication segment," according to iSuppli."Furthermore, overproduction of LCD televisions added to excess stockpiles of related chips during the quarter.''
By: DocMemory
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