📊Executive Summary

The article discusses the challenges of managing excess inventory in the semiconductor industry, particularly following the global semiconductor shortage from 2020 to 2022. It highlights how the pandemic led to increased demand for electronic components, resulting in many OEMs and CMs engaging in double-ordering to secure safety stock. However, as demand shifted back to normal, excess inventory levels surged, with some companies holding up to six months of stock. This excess poses risks due to the limited lifespan of advanced semiconductors and the potential for degradation if not stored properly. The article emphasizes the importance of accurate demand forecasting and the need for organizations to adapt to market volatility to mitigate excess inventory issues....