TechFlow news, according to Chaoxiang Research, Morgan Stanley's July 1 semiconductor inventory tracking report shows that Q1 North America semiconductor supply chain inventory increased by only 9 days quarter-over-quarter, far lower than the seasonal increase of 19 days.
Differentiation among the three segments is obvious: Distributors' DOI decreased contrary to the trend by 2 days to 61 days, with WPG and Avnet's revenue growth rates both exceeding inventory growth rates; Chip manufacturers' DOI increased by 2 days to 114 days, lower than seasonal levels, but smartphones and foundries are still accumulating inventory, while analog and equipment are already reducing inventory; Customers' DOI increased by 9 days, in line with seasonality, but communications and ODM inventories surged, exceeding historical medians by 23 days and 21 days respectively, while automotive suppliers instead returned near the median.
Full chain inventory remains 33 days higher than the historical median, and large-scale restocking has not yet started. Morgan Stanley recommends three sectors that have completed supply clearance first: analog chips (ADI, NXP), compute network (NVDA, AVGO, CRDO), memory (MU, SNDK), and simultaneously highlighted MKSI, KLAC, LRCX, ONTO on the equipment side.
