February 18, 2009

Look for inventory reduction opportunities in the months ahead

Converge General IC Update

General IC activity is certainly slower than this time last year. Although activity is softer, opportunities are still presenting themselves for customers looking to save on cost and take advantage of the inventory reductions occurring in the manufacturing space.

Spot shortages currently exist in some areas where Altera PLDs, Freescale processors, Broadcom networking chips and scattered demand for Vitesse transceivers remain in tight supply. There has also been some renewed activity on TI and Analog Devices DSPs. February has seen renewed activity on military connectivity devices, and although military activity in general seems to be slowing, problems with Microsemi’s mil-spec diodes continue.

We are still tracking a number of inventory reduction opportunities from January, and we expect this trend to continue in the coming months. Now is the time for savvy buyers to shop for bargains while excess inventory is available in the market.

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