Latest data: Semiconductor inventory Q2 continues to rise

According to IHS iSuppli's latest Inventory Market Brief, the semiconductor semiconductor inventory level of global wafer suppliers in the second quarter is expected to increase. It should have risen for the seventh consecutive month. It is an inventory that has been consumed because of industrial reconstruction. And prepare for the expected increase in demand.

According to the latest IHS forecast, the total inventory level of all semiconductor suppliers in the second quarter (without large changes in memory chips) is estimated to rise to 81.5 days, which is 1.5% higher than the 80.3 days in the first quarter, plus the increase this time in stock. The standard has been rising since the last quarter of 2009.

Analyst Sharon Stiefel: “Incremental inventory in the first quarter reflects the efforts of semiconductor suppliers to rebuild their product inventories. Due to capacity contraction last year, there was a shortage of supply. Suppliers also turned to strategic inventory builds because of higher demand expected later this year. Because of this coincidence, semiconductor component makers have been able to use the first quarter of the season to rebuild their inventory."

Inventory of electronic product supply chains, including semiconductor suppliers, distributors, foundries, and original equipment manufacturers (OEMs), has risen, except for computer manufacturers. Computer OEM stocks fell by more than 8%, probably because retailers rebuilt stocks after the year-end consumer season in the fourth quarter of last year, so they shipped large quantities to retailers.

In comparison, the percentage increase in internal inventories of memory chips and analog wafer factories is the highest, with an increase of nearly 15%, while IC manufacturers and distributors have the smallest increase.

With the overall economic factors fostering the growth of the global electronics industry, and generally positive (apart from the US housing market and rising gasoline and food prices), semiconductor inventories may continue to rise at the end of the year, and the market for popular products such as smart phones, tablet computers, etc. Demand may stimulate growth.

The IHS study pointed out that Japan's 311 earthquake had little effect on the inventory level of the electronic product supply chain, as inventory was already established in the first two quarters. As a matter of fact, a wider range of production disruptions may have occurred, but due to the availability of an appropriate supply, and the production plant was repaired and restarted to resolve the crisis, some manufacturers responded flexibly and moved production outside Japan. Factory.

One of the continuing worrying parts may be the supply of raw material wafers, because Japan is the supplier of nearly 60% of the world's semiconductor wafers.

Seeing that the market has been turbulent recently, manufacturers may increase their orders as buffers to avoid future supply chain disruptions. Maintaining higher stocks in the future may become the new normal, reducing the impact of natural disasters and political turmoil on production.