Semiconductor suppliers possessed the largest amount of inventory in the PC supply chain over the last six years on average, while PC distributors had the least. From 2007 to 2013, semiconductor suppliers held the greatest amount of stockpiles at 78 days on average as quantified by the Days of Inventory (DOI) metric, while PC distributors carried the least with 31 days.1
The DOI measure in this case applied to the goods and subcomponents manufactured. For semiconductor suppliers, this meant chips and integrated circuits; for PC distributors, computers were the items being assessed. After semiconductor distributors, the next highest DOI was 45 days, claimed by pure-play foundry suppliers for wafers, chips and chemicals. Also in the range of 40 or so DOI were semiconductor suppliers as well as electronic manufacturing services (EMS) providers.1
Revenues for EMS companies in the analysis increased by ~7.8% QoQ. Arrow Electronics’ revenue increased by 9.4% led by increased demand in their component business. Additionally, improving demand in Europe led to better than expected sales.
In terms of net income, Flextronics International reported the strongest growth with income of US$59mn in contrast to a loss of US$27mn in the prior quarter. This resulted from lower restructuring charges in the current quarter.