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Chip inventory status ‘worrisome’ - Gartner |
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Gartner Inc. Has said that semiconductor days of inventory (DOI) are forecast to plateau in the third quarter of 2011 at “worrisome” levels on account of current conditions and weaker-than-anticipated consumer and business spending. Gartner said it expects the semiconductor industry to begin an inventory correction in late 2011.  Just last week, Gartner said worldwide semiconductor revenues slowed during 2011, with the market set to post a total of $299 billion, marking a decline of 0.1 percent from 2010. The short-term outlook, the firm said, was shaped by excess inventory, manufacturing overcapacity and slowing demand due to economic weakness. Gartner's analyst Gerald Van Hoy said the semiconductor industry entered the third quarter with moderately high levels of inventory. He said the present levels were too high given the weakening economic sentiment and expects the industry to rein in production growth and take action to reduce accumulated inventory over the coming quarters. The Gartner Index of Inventory Semiconductor Supply-chain Tracking (GIISST) remained at caution levels with days of inventory (DOI) at 1.12 in the third quarter of 2011. Within the GIISST, Gartner said, an above DOI level of 1.10 indicates inflated inventories and impending downward pressure on average selling prices. Below the 0.95 level inventories are considered low, with components most likely being on allocation and double ordering begins. |
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