Drop in Q1 semiconductor inventory
Total inventory held by semiconductor suppliers declined significantly in the first quarter of this year, according to a report by IHS iSuppli.
The latest figures show semiconductor makers' inventory declined to $37.6billion in Q1, down 4.6% from $38.4bn in Q4 2012.
The decline in inventory paralleled the contraction in semiconductor revenues, which fell 5.1% sequentially, following the normal seasonal demand pattern.
"While overall chip revenue declined in the first quarter, falling inventories among chip suppliers -combined with expanding stockpiles at distributors, contract manufacturers and oems - indicate that consumer demand for electronics rose during the period," said Sharon Stiefel, analyst for semiconductor market intelligence for IHS.
"This contributed to a decline in chip inventories. At the same time, semiconductor companies maintained tight control over their manufacturing capacity, contributing to the decline in inventory."
