Chip inventory continues to build, says IHS

LONDON – Semiconductor inventory levels at chip suppliers worldwide excluding memory have risen for the seventh consecutive quarter, according to market research company IHS.

The total stockpile level, excluding memory, is projected to have risen to 81.5 days in the second quarter, up 1.5 percent from 80.3 days in the first quarter, the company said.

Suppliers are moving to build inventory ahead of expected demand in the second half of 2011, according to IHS semiconductor analyst Sharon Stiefel.

Memory and analog companies had the highest percentage increases in their internal inventory, with growth of almost 15 percent, while fabless chip companies and distributors had lower increases, IHS said.

Although the Japanese earthquake and tsunami appears to have had low impact on the supply-chain in most markets, it may have served to change attitudes. Holding higher inventory could become more acceptable in the future as a means to avoiding problems when natural disasters or political unrest strike.




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