New research has shown that global inventories held by semiconductor suppliers increased to the highest level in two and a half years during the fourth quarter of last year.
According to IHS iSuppli, semiconductor suppliers had 83.6 days of inventory at the end of the fourth quarter of 2010, newselectronics.co.uk reports.
This is up 5.5 days, or seven per cent, from 78.1 days in the previous quarter.
Indeed, inventory was said to be at its highest level since the second quarter of 2008.
Analyst Sharon Stiefel told the news provider: "Inventory levels arguably now are high by any standard, illustrating the difficulty of controlling chip stockpiles despite the arduous efforts of semiconductor suppliers to keep them in check.
"The sharp increase during the fourth quarter of semiconductor inventory defied expectations of a decline for the period, but the inflated level of inventory could become a concern if semiconductor industry growth falls short of expectations in 2011."