Semiconductors surge 'no cause for alarm'

e14news — Thu, 07 Oct 2021 05:57:51 GMT

Current Revision posted to Documents by e14news on 10/7/2021 5:57:51 AM
Semiconductors are in strong supply at the moment, as one industry analyst reports the emergence of a trend predicted some weeks ago.

In early August, iSuppli increased its forecast for activity in the semiconductors sector as a number of key vendors were seen to be building up their inventories.

Now that trend has emerged, the analyst is warning against seeing it as a bad thing.

"All told, the numbers underline a common theme for the semiconductor industry in the second quarter of record revenues, profits and gross margins," iSuppli says.

With demand expected to rise further in the months to come, the research firm adds that high levels of stock should not lead to a swamped supply of components.

In the second quarter of a typical year, the inventory levels at the 35 major firms tracked by iSuppli would be expected to rise by about 3.2 per cent due to seasonal effects.

However, in 2010, a nine per cent increase in the value of goods held by manufacturers was seen by the firm.