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U.S. companies have less than five days of semiconductors inventory

U.S. companies have less than five days of semiconductors inventory

Posted January. 27, 2022 07:56,   

Updated January. 27, 2022 07:56


Amid the global semiconductor shortage, companies around the world are reported to have its semiconductors inventory down by one-eighth in two years.

The U.S. Department of Commerce gathered data on semiconductor supply chain and announced such conclusion on Tuesday. The analysis was compiled based on the U.S. Treasury’s gathering of data on inventory and sales from some 150 global semiconductor manufacturers and purchasers, including Samsung Electronics and SK Hynix, in November 2021.

“The U.S. used to have an average of 40 days’ supply of semiconductors, but the chip inventory plummeted to an average of less than five days’ supply, and the core industry is seeing even lower inventory levels,” the U.S. Department of Commerce announced. “An average demand for semiconductors in 2021 was 17% more than that of 2019, which was two years earlier. There is a serious mismatch between supply and demand.”

“If semiconductor manufacturing factories shut down for two to three weeks because of supply chain shortage, and in the event where other disturbing factors emerge, the U.S. manufacturing facilities will be dealt a heavy blow, and they may have to temporarily lay off workers,” warned the Commerce Department. The companies that responded to the U.S. Commerce Department’s request for information forecasted that the supply and demand mismatch would continue at least for another six months.

Jae-Dong Yu jarrett@donga.com