Stocks of chips higher than ever
Research by Merrill Lynch has shown that inventories of processor and memory chips are higher than ever. The manufacturers of semiconductors and also the device manufacturers report considerable inventories.
At the moment, the inventory of finished units at the manufacturers of semiconductors corresponds to a production volume of 64 days. That is 22 days more than the average value for the last 4 years. The device manufacturers even have enough stock for 82 to 103 days. According to estimates at Merrill Lynch, it will take at least two more quarters for the industry to adjust to the falling sales. Until then, there will be considerable burdens due to special depreciation.