Inventory corrections seem to be over in the semiconductor supply chain.
With the inventory correction is behind the industry, now the talk is of sales growth and allocation.
Oh happy times.
Comments from distributors in the last few weeks have indicated this.
Then over-night in the US, Texas Instruments confirmed this further, from the point of view of its extensive supply chain, by saying that its customers had stopped inventory corrections.
The up beat message continued with TI's Q3 sales coming in ahead of expectations and the forecast for Q4 was for more of the same.
According to marketwatcher iSuppli, the slashing of chip inventories at the start of the year saw inventory levels dip below optimal levels in Q2.
Chips sales plummeted in the first six months of the year as a result.
This was been as a painful but necessary step if the chip industry was to return to growth before the end of 2009.
The indication that suppliers are now building inventory levels again is evidence that chip sales growth is not far away.
TI's results, which follow similarly upbeat figures from Intel last week, seem to confirm this.
