Semiconductor prices started to improve late last year as demand finally caught up with bloated inventories and excess manufacturing capacity, says Jim Feldhan, president of Semico Research Corp. in Phoenix.(Prices: factors affecting product cost)(Brief Article)

Purchasing, August, 2004

Semiconductor prices started to improve late last year as demand finally caught up with bloated inventories and excess manufacturing capacity, says Jim Feldhan, president of Semico Research Corp. in Phoenix. "For the remainder of 2004, we expect to see a trend of increasing prices." But he also thinks manufacturers are being careful not to gouge.

"The stock market has been nervous about how long this [semiconductor demand] recovery will last," he says. "So there's been pressure to keep capacity high and not boost prices too much."