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Supply chain remains tight amid conservative capacity management

While the end of 2009 brought improved availability for many commodity electronic components, supply for most parts remains tight, according to iSuppli, a US market research company.

Given the ongoing vigilance among manufacturers, inventories will remain lean for the foreseeable future. Despite days of inventory remaining close to historical lows at 9 of the 10 supply chain nodes tracked by iSuppli, many suppliers have no qualms about their current inventory position. Among the nodes, only electronic manufacturing service providers have shown an increase in inventory.