Japanese earthquake-tsunami did not slow electronics supply chain

THE IHS iSuppli Inventory Market Brief shows that semiconductor inventory levels at chip suppliers worldwide increased for the seventh month in a row in the second quarter, as the industry restocked to prepare for anticipated higher demand.

Inventories throughout the electronics supply chain during the first quarter grew for all sectors except for computer manufacturers. Computer OEM stockpiles fell by more than eight per cent, reports the UK`s Transport Intelligence.


It cited IHS as saying that semiconductor inventories were likely to continue increasing for the rest of the year. Growth, according to their analysts, will be driven by market demand for popular consumer items such as smartphones and tablets, as well as for PCs.


According to the consultancy, "the Japan earthquake in March had a minimal effect on the electronics supply chain, given that inventories had been built up during the prior two quarters. In fact, it believed that a more widespread disruption was prevented by supplies on hand, while the repair and restart of production facilities and agile moves among manufacturers to shift production from Japan to facilities outside the country," the report said.