Worldwide semiconductor glut surprises analysts

By Steve Malone

Posted on 22 Oct 2004 at 10:45

The world's surplus of semiconductors rose to $1.1 billion a rise of 38 percent from $829 million the second quarter according to industry analyst iSuppli's Semiconductor Inventory Tracking service.

iSuppli originally expected inventory levels to remain flat as the semiconductor market increased sales and scaled back production. However, this hasn't happened, with the result that inventories are now at record levels. The company has better news for the semiconductor business over the coming months. Sales are expected to rise 5.8 and 1.8 percent for the third and fourth quarters respectively.

The report backs up news this year from Intel which earlier this year found itself with large levels of excess inventory as sales of PCs failed to meet expectations.