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 news Salesforce CEO Benioff shakes up executive team with new hires Six months after the company lost its co-CEO and announced it was laying off 10% of its global workforce, Salesforce’s top team is undergoing a major personnel change. By Charlotte Trueman Jun 07, 2023 3 mins Technology Industry Enterprise Applications opinion Cisco debuts bold portfolio of network, security, and observability solutions and previews generative AI capabilities for Webex and Security Cloud Cisco’s innovative technologies help connect the dots of its network- and cloud-based ecosystem. By Pete Bartolik Jun 07, 2023 4 mins Cloud Security brandpost Help wanted: IT tools and talent for building a multicloud estate Like all trade workers, IT leaders need the right tools and skills to succeed in a multicloud world characterized by application and data sprawl. By Chad Dunn, Vice President, Product Management, Dell APEX Jun 07, 2023 6 mins Multi Cloud brandpost A guide to hybrid cloud deployment for innovation without disruption How do organizations balance their on-premises preferences and requisites with the crucial need to innovate? By Ahmed Helmy, Global Vice President, Avaya Experience Platform Product Management Jun 07, 2023 3 mins Hybrid Cloud 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