EL SEGUNDO, CA — Excess stockpiles of PC microprocessors and core-logic chipsets caused surplus semiconductor inventories in the global electronics supply chain to rise more than expected in the second quarter, according to new data from iSuppli Corp.

The research firm puts the blame squarely on Intel Corp. It is unclear as to whether Intel overbuilt any certain styles in anticipation of lead-free demand that didn't materialize.
“Excess inventories have exceeded the worrying levels seen during the last semiconductor supply snafu in mid 2004. However, with most of the excess inventory restricted to PC- related chips, and mainly to a single supplier -- Intel -- the surplus stockpiles are not a major concern for the global electronics industry,” said iSuppli analyst Rosemary Farrell.

Excess semiconductor stockpiles in the global electronics supply chain rose to $2 billion in the second quarter, up 77.6% from $1.1 billion in the first quarter. iSuppli had predicted a more moderate rise to $1.3 billion.

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