Powerelectronics 1678 Semiconductor Chart

Semiconductor Inventory Falls as Demand for Electronics Rises

June 26, 2013

Demand for consumer electronics rose thanks to increasing orders for smartphones and personal computer (PC) equipment, whereas semiconductor inventory fell considerably for the first quarter of 2013.

Iliza Sokol

In the first quarter, semiconductor inventory declined significantly, from $38.4 billion to $37.6 billion, or a drop of 4.6%. Excess stockpiles created during the economic troubles of 2012 were cleared away in anticipation of a consumer demand for electronic products for the remainder of 2013. The decrease paralleled the revenue numbers, which fell 5.1%.

Increases were seen, however, in the cellphone and personal computer (PC) original equipment manufacturer (OEM) industries; specifically with finished smartphones which saw a 7.2% rise. Semiconductor inventory levels are expected to rise in the second quarter in response to order rates from electronics equipment manufacturers, incentivizing companies to load factories.

About the Author

Iliza Sokol | Associate Content Producer

Iliza joined the Penton Media group in 2013 after graduating from the Fashion Institute of Technology with a BS in Advertising and Marketing Communications. Prior to joining the staff, she worked at NYLON Magazine and a ghostwriting firm based in New York.