Semiconductor update $smh

Bear case in a nutshell

• Ericsson said it built a “buffer” inventory as it looked to tackle supply chain disruptions – “In light of the global supply chain challenges, we decided to create a buffer of vital components in order to secure that we meet customer delivery commitments”. This “buffer” caused Ericsson’s inventories to rise 17% Q/Q despite revenue being down 23% Q/Q.

What to do?