Featured Articles

LG G Watch R ships in two weeks

LG G Watch R ships in two weeks

The LG G Watch R, the first Android Wear watch with a truly round face, is coming soon and judging by…

More...
LG unveils NUCLUN big.LITTLE SoC

LG unveils NUCLUN big.LITTLE SoC

LG has officially announced its first smartphone SoC, the NUCLUN, formerly known as the Odin.

More...
Microsoft moves 2.4 million Xbox Ones

Microsoft moves 2.4 million Xbox Ones

Microsoft has announced that it move 2.4 million consoles in fiscal year 2015 Q1. The announcement came with the latest financial…

More...
Gainward GTX 970 Phantom previewed

Gainward GTX 970 Phantom previewed

Nvidia has released two new graphics cards based on its latest Maxwell GPU architecture. The Geforce GTX 970 and Geforce GTX…

More...
EVGA GTX 970 SC ACX 2.0 reviewed

EVGA GTX 970 SC ACX 2.0 reviewed

Nvidia has released two new graphics cards based on its latest Maxwell GPU architecture. The Geforce GTX 970 and Geforce GTX…

More...
Frontpage Slideshow | Copyright © 2006-2010 orks, a business unit of Nuevvo Webware Ltd.
Monday, 18 March 2013 10:05

Intel kills off chip inventories

Written by Nick Farrell



Industry overkill

The rising crisis of huge inventories of chips going unsold has been averted thanks to surprisingly swift action from Intel but it might have caused a bigger problem.

According to an iSuppli report, analysts were worried about a rise in the global semiconductor inventories in the third quarter of 2012. Days of Inventory (DOI) for semiconductor suppliers in the fourth quarter declined by five per cent compared to the third quarter. This is higher than the 1.5 per cent initial forecast.

Sharon Stiefel, analyst for semiconductor market intelligence at Isuppli said that semiconductor companies reduced their inventories at a faster-than-expected rate in the fourth quarter as they moved to adjust to weakening demand. While many chip suppliers demonstrated great agility in their reactions to the drop in demand, Intel was the most aggressive.

Chipzilla slashed its stockpiles by more than half a billion dollars—the largest decrease on a dollar basis of any chipmaker. Intel cut its inventory by $585 million from the third quarter, representing an 11 percent reduction. It also reduced production as it migrated to 14-nanometer lithography.

Isuppli said that the fall in inventories was probably a bad sign because they are are expected to rise in response to slightly positive global economic indicators. The fact that Intel has cleaned out its warehouses means that it dies not expect to see major increases in sales in the short term.

Nick Farrell

E-mail: This e-mail address is being protected from spambots. You need JavaScript enabled to view it
blog comments powered by Disqus

 

Facebook activity

Latest Commented Articles

Recent Comments