Global inventory adjustment will continue to reduce the growth rate of the semiconductor industry

Day before, the world's largest foundry TSMC (TSMC) is expected, mainly for the semiconductor industry inventory adjustment will continue for a period of time". A spokesman for the company said, we expect the inventory adjustment will continue for some time, which is consistent with the company in the third quarter of July is expected to match." The level of inventory is a "barometer" of the electronics industry, because the inventory is closely linked with the production chain.

Large inventories may lead to opposite results, usually inventory units will be the first clearance to purchase orders. Local media quoted TSMC chief executive Rick Tsai as saying that inventory adjustments will continue until the end of 2006. TSMC spokesman said, has not yet released fourth quarter sales expectations.

When in 2006 July, the company said that due to the ongoing inventory adjustment, expected third quarter sales will be flat with the previous three months or less. At the same time, TSMC will reduce the growth rate of the semiconductor industry in 2006 from 8%-12% to 8%.