Inventory falls as demand rises

ihs_logo_mpA supply chain inventory brief from industry analyst, IHS, has revealed that the total inventory held by semiconductor suppliers declined significantly in the first quarter. Excess stockpiles created during the global economic malaise of 2012 were cleared away, in anticipation of a resurgence in consumer demand for electronic products expected by the second half of 2013.

Semiconductor manufacturers’ inventory was also down 4.6 per cent in the first quarter.

IHS analyst for semiconductor market intelligence, Sharon Stiefel, explained: “While overall chip revenue declined in the first quarter, falling inventories among chip suppliers—combined with expanding stockpiles at distributors, contract manufacturers and original equipment manufacturers—indicate that consumer demand for electronics rose during the period. This contributed to a decline in chip inventories. At the same time, semiconductor companies maintained tight control over their manufacturing capacity, contributing to the decline in inventory.”