Chip inventory increased semiconductor may be revised in the second half"

Market research firm Susquehanna Financial Group analyst Andre Biggs warned that the chip stocks continued to increase, indicating the semiconductor industry in the second half of 2006 may be worrying "fix" situation.

Andre Biggs said in a report: "we of the semiconductor company inventory analysis showed that the inventory of the absolute and relative levels are on the rise, we believe that this trend is likely to continue throughout the year 2006."

"Although the inventory level and the warning level far in Taiwan area may be an exception, our theme is still far higher than the industry output to the sustainable consumption level, that stocks will continue to rise, but the second half of 2006 production slowdown." Andre Biggs think.

According to Susquehanna Financial Group, the first quarter chip inventories rose 3.7%, sales fell 7.5%, resulting in inventory days increased from 69 to 75 days. Global inventories of IDM rose 3.3% in the first quarter, up from an average of $78 in the first quarter, as inventories increased from 72 to. United States, the region's inventory of wafers climbed 11.6%, while sales increased by only 3.4%, the number of days from the stock rose to 64 days.

In the first quarter in Taiwan factory chip inventory increase of 23%, sales fell 11%, resulting in inventory days from 54 to 69 days.