SAN JOSE, Calif. Excess semiconductor inventories in the electronics supply chain declined to $1 billion in the fourth quarter of 2004, down 38.3 percent from $1.6 billion in the third quarter, according to iSuppli Corp. on Thursday (Jan. 27).
iSuppli (El Segundo, Calif.) previously had forecasted that excess inventories would decline more modestly to $1.5 billion in the fourth quarter. "Thus, the larger decline in inventory came as a upside surprise," according to the research firm.
"However, with the supply chain still having $1 billion in excess chip inventories left to burn and with semiconductor sales growth slowing in 2005, the surplus remains an issue of concern to the worldwide electronics industry," it said. "Thus, iSuppli for now is maintaining the yellow alert it sounded in third quarter regarding excess chip inventories."