SAN FRANCISCO—Semiconductor suppliers increased their inventories for the second straight quarter in the first quarter, this time driven by anticipation of higher demand from customers, according to a report by market research firm IHS iSuppli.
Total chip inventory as a percentage of suppliers' revenue amounted to 50 percent in the first quarter, up from 47.8 percent in the fourth quarter of 2011 and from 46.1 percent in the third quarter of 2011, IHS said.
While inventory increased in each of the last two quarters, the reasons for the increases and the implications for the market differed dramatically, according to
IHS iSuppli's latest Inventory Insider market brief. 