The semiconductor inventory alert is about to be lifted. Q2 is over.
the inventory problem that has plagued the semiconductor market for more than half a year is finally coming to an end! According to the latest report of iSuppli, a market research organization, semiconductors are directly transported to the market every day to sell us. The alarm of excess inventory is about to be lifted. Following the smooth destocking of 38% in the fourth quarter of 2004 (Q4), iSuppli expects that the inventory level in Q1 2005 is expected to fall by another 24%, only about 780million US dollars. The global semiconductor supply surplus is expected to end at Q2
the global semiconductor inventory surplus at 20 impact energy can not directly indicate that the toughness of materials began to deteriorate in the second half of Q2 in 2004. In addition, it needs to be added that with the Q2 financial report of semiconductor leader Intel (according to the content tested by many manufacturers), the news of a significant increase in inventory of $427million was released, and the entire semiconductor industry immediately fell into the panic of inventory surplus, The inventory effect gradually appeared in Q3
after the prosperity of the first half of 2004, many manufacturers have revised down Q3 financial forecasts, and there are also many examples of official financial reports that are not as good as expected. The Q3 inventory level has also surged to the peak since Q4 in 2002, reaching $1.6 billion, which also seems to announce that the semiconductor market has officially entered the "yellowalert"
fortunately, the industry has been committed to de stocking since the second half of 2004. Even Intel announced that it plans to reduce the production capacity of some production lines. Therefore, Q4 entered the inventory correction period. According to iSuppli data, Q4 de stocking exceeded expectations, and the inventory level decreased by 38% to only $1billion. ISuppli is optimistic in its latest report that the inventory level of Q1 in 2005 is expected to fall by another 24%, to only $780million, It is estimated that the oversupply will come to an end in Q2 2005
isuppli also pointed out that the shortage of some Intel Q1 products is the best proof that the inventory alarm is about to be lifted. Due to the oversupply of semiconductor supply chain in the second half of 2004, most of the outside world is attributed to the sudden increase in Intel's inventory. Therefore, when Intel released a positive message in the Q1 financial forecast, it also increased the possibility that the market will soon come out of the shadow of inventory
Intel reduced inventory by 18% in Q4 2004 at one go, and in Q1 2005, it said that due to the reduction of production capacity, some products were out of stock, and the inventory removal was still ongoing
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