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Chip shortages driving IC inventory pile up
VLSIresearch reported that semiconductor inventory levels have increased significantly so far in the third quarter. The Inventory-to-Billings ratio remains at low levels as reported by in a recent edition of The Chip Insider®. IC inventories are particularly high at OEM electronics companies, who are still in their production ramps to Christmas and the Lunar New Year. While this is a seasonal trend, the slower ramp in inventory at chip producers is more concerning.
VLSIresearch reported separately in ‘Semiconductor Analytics’ that the demand-supply balance has tilted to shortage conditions this quarter. Market conditions for DRAM, NAND Flash memory, and Foundry wafers have been a seller’s market, in particular, according to VLSIresearch.
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