DOI (days of inventory) dipped in Q3 2011, a sign that suppliers are adjusting to slower market conditions.
Suzanne Deffree, Managing Editor, Online -- EDN, February 2, 2012
DOI (days of inventory)
dipped in the third quarter of
last year, according to IHS.
Semiconductor suppliers’
chip inventories experienced
a steady expansion during
the previous seven quarters.
Semiconductor stockpiles in
the third quarter stood at 81
days, down 2.5% from 83
days in the second quarter.
IHS estimated that global
semiconductor revenue in
2011 would rise by 1.9%
compared with a forecast of
7% growth that the company
issued early in the year.
“For the third quarter, semiconductor
suppliers began
an inventory correction to
alleviate an escalating oversupply
situation on top of
already-inflated stockpiles,”
says Sharon Stiefel, IHS
semiconductor analyst.
DOI in the third quarter
remained elevated in
absolute terms—the highest
of the last 10 quarters,
dating to the fourth quarter
of 2008—suggesting that
stockpiles are still high.
Further, the percentage of
oversupply during the period
rose to 12.1%, exceeding
the 11.1% spike in oversupply
during the fourth quarter
of 2008. “Visibility continues
to be murky in many sectors
given the volatile world
economy, and demand
remains difficult to predict,”
Stiefel adds.
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IHS estimated that global
semiconductor revenue in
2011 would rise by 1.9%
compared with a forecast of
7% growth that the company
issued early in the year.
“For the third quarter, semiconductor
suppliers began
an inventory correction to
alleviate an escalating oversupply
situation on top of
already-inflated stockpiles,”
says Sharon Stiefel, IHS
semiconductor analyst.
