keeping high inventory becomes crucial: IC Chip Distributors

According to the latest report, IC distributors said that due to the challenges brought by the epidemic, maintaining relatively high inventory levels has become a basic strategy for companies.

Join tip3x on Telegram

IC dealer executives described 2022 as a year of “dynamic management”. Judging from the momentum in the first quarter, demand is still sufficient, in line with the forecast of the semiconductor packaging and testing industry. The first half of 2022 is mainly used to process deferred orders from 2021.

Looking ahead to the second quarter, major system makers and branded suppliers will start cutting orders amid rumors of high component inventories. IC distributors also believe that the current demand for ICs in the end-equipment market requires a “stop, look, and listen” approach. 

Moreover, various non-economic factors in 2022, such as the Russian-Ukrainian conflict and the ongoing outbreak, make the final market situation difficult to determine.

IC chip 

IC chip (Integrated Circuit Chip) is an integrated circuit formed by a large number of microelectronic components (transistors, resistors, capacitors, etc.) on a plastic base to make a chip. IC chips include wafer chips and packaged chips, and the corresponding IC chip production line consists of two parts: wafer production line and packaging production line.

(via)