Global Excess Chip Inventory Falls 40.5% From 2006 Peak 

Excess semiconductor stockpiles in the global electronics supply chain continued to decline in the first quarter of 2007 due to previous production cuts by chip manufacturers, according to iSuppli Corp.

Excess semiconductor inventories in the global electronics supply chain declined to $2.5 billion in the first quarter of 2007, down 10.7% from $2.8 billion in the fourth quarter of 2006, according to a preliminary estimate from iSuppli’s Semiconductor Inventory Tracker service. Surplus inventory in the first quarter was down by a whopping 40.5% compared to $4.2 billion in the third quarter of 2006.

“The cause of the decline in excess inventory was a major reduction in production among semiconductor suppliers at the end of the third quarter of 2006,” said Rosemary Farrell, inventory analyst at iSuppli. 

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