Excess Chip Inventory Keeps Growing

[HardOCP News]

DigiTimes is reporting that surplus semiconductor inventories in the global electronics supply chain is on the rise once again. According to iSuupli, this could lead to excess stockpiles throughout 2007.

Total excess chip inventory swelled to US$4.3 billion in the fourth quarter, up 4.9% from US$4.1 billion at the end of the third quarter, according to a preliminary estimate from iSuppli.

 

[pain.angel]

"However, indications of rising inventory come amid signs of the start of a seasonal slowdown for the semiconductor market and the larger electronics industry. Chip suppliers in the fourth quarter of 2006 experienced slowing orders for semiconductors for 3G wireless handsets and for high-end computers, adding to weakness already seen in some segments of the networking and wired communications segment."

Because anybody who knows someone that knows what the first 2 quarters of this year are going to be like told them to wait.