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Home News Semiconductor channel providers: invento...

Semiconductor channel providers: inventory reduction is slower than expected

The problem of semiconductor inventory is not only faced by IC design manufacturers, but also faced by downstream IC channel manufacturers to "overcome difficulties" with chip manufacturers in order to take long-term cooperation into account. Even though there is a small amount of urgent order demand for some chips in succession, some IC channel manufacturers have admitted that the current inventory reduction rate is still slower than originally estimated.

IC channel manufacturers analyze whether the current short order in the market is a flash in the pan. Inflation, the Federal Reserve's interest rate increase, the Russian-Uzbekistan conflict and whether there will be retaliatory buying demand in China are the key points to observe.


An unnamed IC channel manufacturer revealed that the current inventory de-stocking situation is not as expected. Assuming that the original estimated inventory de-stocking speed is to purchase 0.5 months of goods and cooperate with the sales of 1 month of goods, the inventory of 0.5 months can be gradually reduced; However, the actual situation now is to buy 0.6 to 0.7 months of goods, but only sell 0.8 to 0.9 months of goods, which leads to a slower rate of inventory reduction than expected.
According to the report of International Data Corporation (IDC), IDC expects that the global semiconductor revenue in the first quarter of this year will decrease by 13.8% year on year due to inventory adjustment and weak demand. It is not expected to turn to positive growth until the fourth quarter, and the total revenue of the whole year will decline by 5.3%.




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