Global chip manufacturing inventories hit record high of $ 64.7 billion | Taiwan News
TAIPEI (Taiwan News) – The total inventory of the world’s top nine chipmakers reached a new record high of US $ 64.7 billion (NT 1.7 trillion) at the end of June.
The news comes as companies rapidly ramp up production to alleviate a prolonged chip shortage that has strained supply chains in various industries this year, according to a Nikkei Report released on Saturday (August 21).
Digitization and the rise of wireless technology have made chips an indispensable component in all industries. Chipmakers, whose production has also been affected by the COVID-19 pandemic, have struggled to keep pace.
Taiwan Semiconductor Manufacturing Corporation (TSMC), the world’s largest chipmaker, optimized its production lines in the first half of the year, increasing automotive chip production by 30% from the previous year.
The world’s nine largest manufacturers, namely TSMC, Intel, Samsung Electronics, Micron Technology, SK Hynix, Western Digital, Texas Instruments, Infineon Technologies and STMicroelectronics, are all expanding their raw material stocks to develop new production capabilities.
The share of raw materials in total inventories has been steadily increasing since March 2019 in seven of the companies that provide comparable data, and it reached 24% at the end of March, according to the report.
Meanwhile, the major chipmakers continue to rake in record revenues. The top 10 players by market capitalization achieved a net profit of US $ 276 million in the second quarter of this year (April-June), an increase of about 60% year-over-year.