Published in News

Double ordering could stuff up the chip industry

by on26 February 2010

Image

Fears in the Far East


Chipmakers in the Far East are worried about how PC makers are double ordering products and saving them for a rainy day. At the moment component makers are flat out trying to fill all theorders for chips and bits, however there is an indication that the PC makers don't actually need it all just yet.

According to Digitimes, they have all double ordered stock which means that later in the year the component makers will be sitting on their hands with nothing to do.

Foundries have seen demand from IC designers and IDMs picking up quickly following last year's market downturn. However the fear is that an exceptional boom in demand will usually be followed by a slowdown, the sources said.

The market outlook is still unclear and double ordering is not helping things. This could mean that prices will drop as demand dries up.


Rate this item
(0 votes)