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Chip Sales Get Q3 Boost From Inventory Restocking

September 29, 2009
by Eric Savitz
Blogger and Columnist, Barron's, Tech Trader Daily

Eric Savitz

Global chip revenues in the third quarter are getting a big boost from inventory restocking, according to the research firm iSuppli.

According to iSuppli, in the second quarter inventories dwindled to “lean, but appropriate levels,” in a reversal of the excess inventory levels reached in 2008. In the third quarter, the research firm contends, suppliers have moved to build inventories in an attempt to reach a supply/demand balance. As a result, iSuppli contends, global chip revenues will likely by 3 percentage points above actual demand, “increasing an artificial bump in sales for the industry.”

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