Gartner: Semiconductor Supply Chain Inventory Index Alarm

November 19 news, according to foreign media reports, the international research and consulting firm Gartner's latest research report pointed out that the semiconductor supply chain tracking inventory index (GIISST) compared with the 1.12 announced in September earlier, entered the warning zone in the third quarter, increase To 1.16, it shows that the market average selling price may face downward pressure.

According to Gartner's analysis, the GIISST index entered the warning zone in the third quarter and increased to 1.16 compared with the 1.12 announced in September. A GIISST index higher than 1.10 indicates that the inventory is too high and the average selling price may face downward pressure.

On the other hand, if the GIISST index is lower than 0.95, the inventory level will be low, parts may be distributed, and reordering will begin to appear.

Gartner said that global semiconductor manufacturers announced relatively sluggish sales in the third quarter of this year, coupled with generally poor fourth-quarter financial forecasts, and that inventory correction is about to start.

In addition, Gartner has developed a new set of research methods to further strengthen the insights of inventory analysis in order to increase the market's recent uncertainties. This set of research methods is based on reports returned by dealers, large-scale semiconductor components in the lead time situation. This research method was originally applied to mobile phones and flat media components. Use the information dismantled by the mobile phone to analyze the information obtained, organize the key components into useful information, and develop a weekly tracking system of these component lead times.

Gerald van Hoy, senior research analyst at Gartner, said dealer lead time analysis shows that semiconductor lead time has dropped significantly between June and September this year, indicating that current market demand continues to decline.