Qualcomm Inc (QCOM)

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Chip inventory levels dropping fast
http://www.electronicsweekly.com/articles/article.asp?liArticleID=39461&liArticleTypeID=3&li....


Resources Zone: Business



by David Manners

Tuesday 26 April 2005

Chip inventory levels dropping fast



Q1 inventory levels dropped much faster than expected, according to analyst iSuppli, giving a very positive signal for market growth in 2005.

“The value of surplus chip stockpiles in the electronics supply chain plunged to $500m in the first quarter, down 51.5 per cent from $1.03bn in the fourth quarter of 2004,” said iSuppli.

The firm said its analysis is based on preliminary findings from its Semiconductor Industry Tracker service.

iSuppli previously predicted that total excess semiconductor stockpiles in the first quarter would decline by 24 per cent to reach $780m.

"Q1 was much stronger than moist people expected and that will be the pattern for the rest of the year," said Malcolm Penn, CEO of Future Horizons, the analyst company which predicts 15 per cent semiconductor market growth in 2005