EL SEGUNDO – The Japan earthquake and tsunami in March had limited impact on semiconductor companies in the first quarter of 2011, as a result of an inventory buildup from the previous five quarters, says IHS iSuppli.

Days of inventory continue to trend upward for semiconductor component manufacturers. There is a two- to four-week cushion of raw materials/work-in-process and finished goods. Also, because the disaster occurred late in the quarter, the number of weeks of direct disruption to the supply chain was limited, says the research firm.

In addition, many semiconductor manufacturing facilities in the region that were initially affected have returned to normal operation, minimizing the negative impact on second-quarter revenues, says IHS iSuppli. Firms with long-term damage often moved production to alternate facilities.

The inventory upswing is now expected to be based on higher anticipated demand, and any disruption from shortages is expected to dissolve during the next few months. However, stockpiling may be happening with end products, such as TV displays, monitors and notebooks. Some name brand electronics firms are building reserves, says the firm. 

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