Semiconductor inventory rebounded Institutions: Sales growth far exceeds inventory growth The entire AI industry chain is still in a rapid expansion stage

In the first quarter of this year, there are signs of inventory rising among global semiconductor companies. Deutsche Bank pointed out in its latest industry report that this round of inventory growth in the semiconductor industry may more likely reflect companies stocking up early for future demand expansion, rather than a weakening in demand. Inventory turnover days in the industry increased by about 4% compared to the previous quarter, while historically, seasonal growth in the first quarter is usually between 5% and 7%. In other words, despite the increase in inventory, demand is still digesting new supply faster than in normal years. The report shows that in the first quarter of 2026, semiconductor sales increased by 54% year-on-year, while inventory increased by 23% year-on-year. This marks the tenth consecutive quarter that semiconductor sales growth has exceeded inventory growth. Looking ahead to the next few quarters, analysts at Deutsche Bank are optimistic. From the perspective of demand structure, the semiconductor industry is currently supported by two forces. Firstly, AI-related demand remains the most important growth engine for the industry. From AI servers, GPUs, HBM high-bandwidth storage to advanced packaging, the entire AI industry chain is still in a rapid expansion phase. Secondly, previously sluggish industries such as industrial and automotive sectors are starting to improve, making semiconductor demand no longer solely reliant on AI. As traditional end-market demand recovers, the industry's recovery coverage is expanding.