Inventory Adjustment Paused For Ic Design Gradually Recovering

Taiwan IC industry had been under the period of inventory adjustment for six month in 2011. Recently, some Taiwan IC design firms said held that the inventory has gradually declined predicting by the second quarter of 2011, the entire industry chain will come back to normal and healthy level. But with regard to stellar products, Taiwan IC design firms may not able to get many wafer orders. As a result, sales rebound may not come for real until the third quarter of 2011 which is regarded a peak season.

Some Taiwan LED Driver IC suppliers said that actually in the first half of 2010, they saw signs of over-booking. For instance, some use to stabile orders like 2-3 million per month for LCD Drivers IC has increased by 300% or more affected by the trend in the second quarter of 2010. In the second half of the last year, the situation was a little changed; in addition to wafer foundry capacity was not in so tight spot, so clients started to reduce orders.

Further more, clients needed time to reduce inventory for sure. Therefore, Taiwan IC design firms presented decline in almost every single month compared to previous months until the first quarter of 2011.

However, when come into the second quarter, many IC firms include consumer IC and PC peripherals had see signs that inventory adjustment has called off.

The problem is that apart from slight high lever inventory, Taiwan IC design companies have to confront the situation of extremely less orders obtained for stellar products such as Apple’s iPone, iPad or iPod products, and PS3, XboxKinect or Wii game consoles even HTC, Motorola, Nokia, Samsung Electronics, LG and Sony Ericsson’s high-end smart phone. The global semiconductor industry in the first half year of 2011 is promising, but less market share of Taiwan wafer suppliers make no contribution to this trend.

As the result of low level of stockpile and conservative attitude for placing orders, Taiwan IC design companies predicted that sales proportion of the fist half year to the second half year will back to normal as 4:6. The related integrated circuit is CAY10-101J4LF.

By: seekicamy

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Amy S is the freelance writer for e-commerce website in the integrated circuit.SeekIc.com offers the buyers around the world to find quality supplier of electrical components globally. We try our best to aggregate leads in the integrated circuit business world, and let these leads benefit the entire business person.