Chip inventory is still lower than expected supply will continue until the second quarter

According to market research firm iSuppli recently released a report in the first quarter of 2006, electronic products in the supply chain of the semiconductor chip inventory is still lower than expected, which will bring a series of new orders.

ISuppli analyst Rosemary Farrell said: "the fourth quarter of 2005, remaining in the supply chain inventory is still in excess of the chip have a negative impact, in the period of shortage of stock amounted to $726 million. 2005 quarter of last year, the emergence of unusually strong seasonal sales, making the entire semiconductor supply chain caught off guard, a shortage."

ISuppli company expects fourth quarter chip inventory is the ideal gap of only $300 million. In other words, the first quarter from the ideal inventory shortage is the smallest target of $400 million. Total daily inventory of semiconductor suppliers (DOI) is still higher than expected. Preliminary evaluation shows that chip suppliers will maintain 3.5 days of inventory levels this month, slightly lower than the February report of the day of 3.7.

ISuppli predicts that as replenishment operations expand, the entire supply chain will increase the chip inventory operations will continue until the second quarter of 2006.