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Semiconductor Inventory Falls as Demand for Electronics Rises

Semiconductor Inventory Falls as Demand for Electronics Rises

In the first quarter, semiconductor inventory declined significantly, from $38.4 billion to $37.6 billion, or a drop of 4.6%. Excess stockpiles created during the economic troubles of 2012 were cleared away in anticipation of a consumer demand for electronic products for the remainder of 2013.  The decrease paralleled the revenue numbers, which fell 5.1%.

Increases were seen, however, in the cellphone and personal computer (PC) original equipment manufacturer (OEM) industries; specifically with finished smartphones which saw a 7.2% rise. Semiconductor inventory levels are expected to rise in the second quarter in response to order rates from electronics equipment manufacturers, incentivizing companies to load factories.

TAGS: Industry
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