GLOBAL SEMICONDUCTOR SUPPLIERS are expected to maintain empty store cupboards in the first quarter of 2010 in order to maintain profitability amid uncertain economic conditions, according to Isuppli.
Their aim is to keep the prices of chips stable and not force heavy discounting due to oversupply.
In a press release Carlo Ciriello, a beancounter at Isuppli said that despite a very poor 2009 for the semiconductor industry, chip suppliers managed their inventories quite well.
But this year semiconductor suppliers will want to have enough chips out there without too much overstocking. The only way they can do this is by reading the "tea leaves of demand" without making the mistake of placing too much weight on the lemon of uncertainty and the sugar crystals of joy.
The inventory level at the end of the fourth quarter was less than the historical average, and demand over inventory among semiconductor suppliers actually rose slightly during the period, up 2.7 per cent from 66.7 for the third quarter, Isuppli said.
However the suppliers only modestly replenished their store cupboards over Christmas and Isuppli did not detect any indications of an inventory snap-back to the inflated levels of 2008.
Overall, if the suppliers get it right then prices of chips should remain about where they are now. µ
I'm pretty sure Krissy is a girl. If it's a male, then God help the poor bastard get a better name.
But Krissy is an awesome name, assuming no man tube.
@ Mr Venden: Despite all of the articles on The Inquirer that suggest nVidia has package problems, I can't see nVidia dumping tons of product into waste tips.
Much more likely is that nVidia are being clever, realising that 're-branded 8800 chips' will not sell in a world that has plenty of DX11 accelerators... and simply shutting down production plants until next summer.
It makes sense to 'not make products that no one wants'.
Saying that nVidia will 'throw away old chips' shows a remarkable lack of insight into the way that the graphics market works.
p.s. I also think laughing at people because they look funny is wrong and not in good taste.
Saying that all midget despots are the same is a really despicable position to take.
No matter how poor nVidia's products may be, no matter how many failures it endures, no matter how far its share price falls...
...you cannot stand there laughing at the company's owner - simply because of how he looks.
Please refrain from doing this again Krissy Venden.
It's just not funny laughing at the ronery.
Seems that no one is interested in them.
Also, there was some fear about potential dangers from 'chip package bubbles'
The only thing that makes me smile these days is searching for Jen Hsun's "So Ronery" from Team America on Youtube - cranking up the volume and dancing around like Tom Cruise in Risky Business