EL SEGUNDO, Calif. -- The semiconductor industry is slowly returning to heath, as excess chip inventories fell from $300 million in the first quarter of 2003, to $150 million in the second quarter, according to a new report from iSuppli Corp.
This compares to a whopping $2.5 billion in terms of excess chip inventories during the second quarter of 2002, according to the El Segundo-based research firm. Back in the first quarter of 2001, the channels had some $8 billion in excess inventories, according to the report.
"Despite some major potential disruptions to the electronics industry, the second quarter of 2003 ended without a collective increase in inventory levels in the semiconductor supply chain," according to iSuppli.
One of those disruptions was SARS, which was limited to Asia, especially China. "SARS was definitely a problem for China, particularly in PCs and handsets, where weak sales during the quarter spurred inventory expansions for finished products," the report said.