27 Aug 2021 -
 General

Global chipmakers build record inventories in push to end shortage

Total inventory at the world’s nine leading chipmakers hit a record high of $64.7 billion as of the end of June, as companies quickly move to ramp up production to alleviate a protracted shortage that has disrupted supply chains in the auto industry and beyond, reports NikkeiAsia.

Total inventory at TSMC, Intel, Samsung Electronics, Micron Technology, SK Hynix, Western Digital, Texas Instruments, Infineon Technologies and STMicroelectronics are now at historic highs, as chipmakers expand their stockpile of raw materials to drive production, says the report.

Meanwhile, finished chips have flown off the shelves. The turnover rate usually falls when total inventory increases. But sales have been growing faster than inventory, and the April-June quarter saw a turnover rate of 7.8, the highest in 18 months.

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