Excess chip inventory rises.(Brief article)(Statistical data)

Purchasing, February, 2007

By Staff Surplus semiconductor inventories in the global electronics supply chain rose again in the fourth quarter of 2006, but the excess stockpiles should not crimp growth in 2007, according to researcher iSuppli. Total excess chip inventory swelled to $4.3 billion in the fourth quarter, up 4.9% from $4.1 billion at the end of the third quarter.

"The 4.9% increase in excess semiconductor stockpiles conforms to iSuppli's forecast, and does not mark a significant worsening of the surplus inventory situation," says Rosemary Farrell, analyst with iSuppli. "While rising levels of excess inventory are a concern for the global semiconductor industry in 2007, they are not sufficient to derail market growth." Although $4.3 billion appears to be a...

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