Chip Sales Get Q3 Boost From Inventory Restocking

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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