Consumer IC inventory expected to ease by 2Q09 at the earliest
Due to softened demand for consumer electronics products such as interactive toys, digital photo frames and digital cameras, IC distributors will not be able to ease excess inventory until the second quarter of 2009, according to sources at Taiwan's IC design houses.
IC distributors have actually adjusted their inventory levels from the original-standard of 60 days to 45 days, due to the ongoing slump in demand, indicated the sources. Since the beginning of the year, orders placed with IC design houses have dragged down more than 50% compared to the same period of 2008, the sources added.
In addition, since customers in Europe and the US are trying negotiate cheaper quotes, some Taiwan-based IC design houses have expressed concerns over shrinking gross margins for the second quarter of this year, the sources said.
In other news, sources at handset-use IC design houses expect demand for consumer electronics products to pick up slightly after the Lunar New Year holidays.
IC distributors have actually adjusted their inventory levels from the original-standard of 60 days to 45 days, due to the ongoing slump in demand, indicated the sources. Since the beginning of the year, orders placed with IC design houses have dragged down more than 50% compared to the same period of 2008, the sources added.
In addition, since customers in Europe and the US are trying negotiate cheaper quotes, some Taiwan-based IC design houses have expressed concerns over shrinking gross margins for the second quarter of this year, the sources said.
In other news, sources at handset-use IC design houses expect demand for consumer electronics products to pick up slightly after the Lunar New Year holidays.
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