There will soon be a day of reckoning for the rising inventories of semiconductors globally, but chip makers are likely to take the brunt of the pain, an IDC researcher said Tuesday.The number of semiconductors companies have put in storage has built up quickly in recent months, yet factories continue to churn them out at a furious pace, which can’t continue, said Mario Morales, vice president of global semiconductor research at IDC. A chip glut will likely force companies to slash prices, which could filter down to users. But it would likely also cause chip makers to rethink their capital spending and R&D plans, with the potential downside of slower innovation. IDC isn’t the only company warning about rising chip inventories. Intel last month warned of a buildup of chips in the PC sector, which caused its earnings to fall and prompted it to warn that a recovery wouldn’t likely be in the cards until the second half of this year. Market researcher iSuppli also warned of rising inventories, but it indicated that chip levels weren’t yet at unreasonably high levels. Morales said rising inventories aren’t limited to the PC market, but also include chips used in consumer electronics such as digital music players and other gadgets.Chip makers themselves would have to take the brunt of a market correction, since they’re holding most of the chips in their own storerooms. Inventories in the IT supply chain are relatively low, as are inventories at customer companies such as Dell and Hewlett-Packard, Morales said. -Dan Nystedt, IDG News ServiceFor related news coverage, read Another Chip Maker Quits the DRAM Biz and TSMC Advances to Top Chip Production Technology.Check out our CIO News Alerts and Tech Informer pages for more updated news coverage. Related content brandpost Sponsored by Freshworks When your AI chatbots mess up AI ‘hallucinations’ present significant business risks, but new types of guardrails can keep them from doing serious damage By Paul Gillin Dec 08, 2023 4 mins Generative AI brandpost Sponsored by Dell New research: How IT leaders drive business benefits by accelerating device refresh strategies Security leaders have particular concerns that older devices are more vulnerable to increasingly sophisticated cyber attacks. By Laura McEwan Dec 08, 2023 3 mins Infrastructure Management case study Toyota transforms IT service desk with gen AI To help promote insourcing and quality control, Toyota Motor North America is leveraging generative AI for HR and IT service desk requests. By Thor Olavsrud Dec 08, 2023 7 mins Employee Experience Generative AI ICT Partners feature CSM certification: Costs, requirements, and all you need to know The Certified ScrumMaster (CSM) certification sets the standard for establishing Scrum theory, developing practical applications and rules, and leading teams and stakeholders through the development process. By Moira Alexander Dec 08, 2023 8 mins Certifications IT Skills Project Management Podcasts Videos Resources Events SUBSCRIBE TO OUR NEWSLETTER From our editors straight to your inbox Get started by entering your email address below. Please enter a valid email address Subscribe