Die Bank inventories of are on the rise again, becoming a headwind for chip makers, according to VLSIresearch in a recent edition of Semiconductor WEEK. Overall inventories had been on the decline since September, as OEMs trimmed way back as holiday sales of electronics cleared shelves. This comes as IC sales continued to slide compared to last year, with VLSIís Semiconductor Sales Nowcast for 2Q16 showing a decline of 4%.
VLSI tracks inventories on a monthly basis in The Chip Insiderô.† In it IC Inventory Level charts give monthly values for semiconductor integrated circuit inventories held at OEMs, in Die Banks at chip makers, and the total Inventory-to-Billing Ratio.† Historically, rises in the Inventory-to-Billing Ratio have been early indicators of slowing semiconductor sales.
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