Tuesday, August 23, 2016
Search
  
Submit your own News for
inclusion in our Site.
Click here...
Breaking News
Opera VPN App For Android Released
Microsoft Provides Glimpse Of 24-core Processor For HoloLens
Nvidia Unveils Parker, The Latest SOC For Autonomous Vehicles
Toshiba to Implement Eyefi Connected Features in Next FlashAir SD Cards
LG Unveils New Bluetooth Portable Speakers
Android 7.0 Nougat Released For Nexus Devices And LG V20
Sony To Launch Two New PS4 Models Next Month
Samsung To Announce Refurbished Smartphone Program
Active Discussions
Which of these DVD media are the best, most durable?
How to back up a PS2 DL game
Copy a protected DVD?
roxio issues with xp pro
Help make DVDInfoPro better with dvdinfomantis!!!
menu making
Optiarc AD-7260S review
cdrw trouble
 Home > News > General Computing > Intel L...
Last 7 Days News : SU MO TU WE TH FR SA All News

Thursday, March 14, 2013
Intel Leads Decline in Semiconductor Market Inventory in Q4


After reaching a worrisome high in the third quarter of 2012, global semiconductor inventories held by chip suppliers fell at a surprisingly fast rate in the fourth quarter, led by dramatic reductions for market leader Intel.

Days of Inventory (DOI) for semiconductor suppliers in the fourth quarter declined by 5 percent compared to the third quarter - higher than the 1.5 percent initially forecast, according to an IHS iSuppli report. Meanwhile, inventory value in dollar terms fell almost 5 percent?larger than the originally projected 3 percent.

"Semiconductor companies reduced their inventories at a faster-than-expected rate in the fourth quarter as they moved to adjust to weakening demand," said Sharon Stiefel, analyst for semiconductor market intelligence at IHS. "Many chip suppliers demonstrated great agility in their reactions to the drop in demand. No. 1 semiconductor supplier Intel Corp. was the most aggressive, cutting its stockpiles by more than half a billion dollars - the largest decrease on a dollar basis of any chipmaker."

Among semiconductor suppliers that reduced their inventory levels between the third and fourth quarters last year, the percentage of decrease ranged from 5 percent to 25 percent, resulting in chip stockpile value of $60 million to nearly $600 million being shaved off in the companies affected. And while inventory climbed in some companies during the same period, the spread was smaller, with the value of the increase worth slightly north of $40 million to approximately $250 million.



In the table and numbers cited by IHS, memory suppliers are excluded from DOI and inventory value calculations because they report results much later than any other group in the semiconductor supply chain.

The rest of the companies covered effectively straddle the breadth of the semiconductor chain, including those engaged in the wireless, automotive, data processing and industrial segments.

The largest decrease in inventory value during the fourth quarter belonged to Intel, down $585 million from the third quarter, representing an 11 percent reduction. The company made aggressive moves to cut stockpiles. It also reduced production as it migrated to a new process technology: 14-nanometer lithography.

AMD and STMicroelectronics also experienced large inventory declines of $182 million and $131 million, respectively, or 25 percent and 9 percent. In the case of AMD, inventory shrank for its microprocessors as a result of an amended wafer supply agreement with GlobalFoundries for reduced stockpiles. For its part, STMicroelectronics cut utilization rates after exiting its money-losing joint venture with Ericsson.

Two other chip suppliers had notable inventory drawdowns: Texas Instruments, down $91 million or 5 percent, due to weak end-market demand for its chips; and ON Semiconductor, down $63 million or 10 percent, as it burned bridge inventory and coped with reduced revenue.

Among inventory gainers, most faulted low seasonality and an uncertain global economy for a rise in chip stockpiles. Companies in this group included MediaTek, up $58 million or 14 percent; NXP Semiconductors, up $44 million or 7 percent; and Infineon Technologies, up $43 million or 6 percent.

The one exception among gainers that could boast of a strong performance that was linked to an increase in chip inventory levels was Qualcomm, up $247 million or 24 percent. Given the strong market acceptance of its wireless chips in products like the Apple iPhone and iPad, Qualcomm is ramping up production and inventories in order to meet demand.

Semiconductor suppliers will be positioning their inventories in the first quarter this year to prepare for anticipated demand. Inventories are expected to rise in response to slightly positive global economic indicators as well as favorable semiconductor and end-equipment forecasts - unless major swings occur once more from the larger suppliers that could then end up skewing the industry.


Previous
Next
Sony Optiarc Stopped Its Business        All News        4K LCD TV Panel Shipments Expected to Reach 2.6M in 2013
Apple Updates Mountain Lion, Safari     General Computing News      New Optical Transmission Technology Achieves 100 Gbps Using 10 Gbps Transmission Components

Get RSS feed Easy Print E-Mail this Message

Related News
Intel to Accelerate Altera, Autonomous Driving
Nvidia Says Intel Is Misleading With Outdated Deep Learning Benchmarks
Intel Says USB-C Audio Could Kill Traditional Headphone Jacks
2016 IDF: From Virtual Reality to Artificial Intelligence to 5G
IDF: Intel Talks About Upcoming Kaby Lake Processors And Optane SSDs
Intel To Produce 10nm ARM-based Chips LG, Others
Intel Developer Forum 2016 Report
Samsung, TSMC And Intel Set To Expand Their Chip Production Capacities In 2H
Intel Recalls Basis Peak Fitness Watches
Intel Kaby Lake Processors Coming Soon
Slow PC Market Keeps Hurting Intel
Project Malmo, Which Lets Researchers Use Minecraft for AI research, Makes Public Debut

Most Popular News
 
Home | News | All News | Reviews | Articles | Guides | Download | Expert Area | Forum | Site Info
Site best viewed at 1024x768+ - CDRINFO.COM 1998-2016 - All rights reserved -
Privacy policy - Contact Us .