European Semiconductors Inventory Review 1Q26: Sector is in a sweet spot with normal levels of overall inventory, though it is well below seasonal in the key distribution segment.

Research evidence excerpt

European Semiconductors Inventory Review 1Q26: Sector is in a sweet spot with normal levels of overall inventory, though it is well below seasonal in the key distribution segment.

J P M O R G A N Europe Equity Research

15 May 2026

European Semiconductors

Inventory Review 1Q26: Sector is in a sweet spot with

normal levels of overall inventory, though it is well below

seasonal in the key distribution segment.

• Inventory position indicates an environment conducive to an up-cycle European Tech Hardware &

with no indication of short term non-macro risks: Semiconductor inventory Payments

increased 3.9% QoQ in absolute terms in 1Q26, with inventory at 149 days (vs. Sandeep Deshpande AC

139 days at the end of Q4’25 and 138 days at the end of Q3’25). On a (44-20) 7134-5276

seasonally-adjusted basis, overall semiconductor days of inventory stood 0.6% sandeep.s.deshpande@jpmorgan.com

below normal seasonal levels (3-year seasonal average) exiting 1Q26, higher Craig A McDowell

than 2.1% below average seen at the end of Q4’25 but still no negative trend. (44-20) 7742-4576

The pushback on the current inventory would be that the 149 days of inventory craig.mcdowell@jpmorgan.com

is substantially higher than the average inventory days pre-Covid. The issue we Anthony Girard

(44-20) 3493-6469

would highlight is that the geopolitical and supply chain environment is now anthony.girard@jpmorgan.com

very different from pre-Covid levels meaning that semiconductor suppliers J.P. Morgan Securities plc

will hold higher inventories driven by customer demand.

Specialist Sales contact details:

• Memory inventories are very lean; distributor inventories are very low

driving re-stocking while autos/industrial semis inventory is now at a Scott Silver - Specialist Sales -

European TMT

'new’ normal.