Semiconductor Oversupply: From Bad to Worse

Semiconductor Industry Association Reports:

Worldwide sales of semiconductors of $21.47 billion in January were 9.2 percent higher than January 2006 when sales were $19.66 billion, the Semiconductor Industry Association (SIA) reported today. January sales reflected a seasonal decline of 1.2 percent from the $21.74 billion reported in December.

It doesn’t sound so bad until you recall that orders for new semiconductor equipment rose four times as quickly. That is going to make the inventory situation, which is already bad, worse.

We just hope they don’t get any “worser.”

Disclosure: William Trent has a long position in SMH.

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