According to the inventory tracking report from IHSiSuppli ,inventory of semiconductors has decline in the third quarter , ending seven consecutive quarterly rise in the previous situation. The industry has entered a self-correcting mode, to ease the oversupply problem.Number of days in the third quarter of semiconductor inventory (DOI) is 81 days which decreased 2.5% than 83 days in the second quarter. Since the fourth quarter of 2009,the days of inventory is on the rise. The fourth quarter of 2009, the number of days inventory is only 67 days, as demand evaporates in times of recession,the inventory is low. Since then, the number of days inventory keeps rising, partly because of the need to add inventory failure, but also to meet growing demand. The third quarter was approximately $ 36.96 billion for inventory, lower than $ 37.29 billion in the second quarter.Inventory level is a measure of the semiconductor industry, an important indicator of health status, it can reflect whether the prospects for the future supply chain is of confidence. If inventory is too low, manufacturers are expected to drop in demand, so the more cautious to prevent poor market conditions in future; and excess inventory is also a problem, it will lead to oversupply, driving prices down. In the third quarter suppliers started inventory correction of semiconductor, in order to ease the growing oversupply situation. As the global economy almost stalled, and faced the order down and visibility dropped, many semiconductor manufacturers decided to reduce capacity utilization. And now delivery has been reduced to normal levels, they no longer need to wait a long time, companies have strongger confidence to cut inventories and do not worry about the supply chain would cause too much problems.Although the companies cut inventory, but for the number of days in the third quarter, the absolute level of inventory is still high, it is the highest level  since the past 10 quarters.In addition, excess supply of the third quarter, the percentage rose to 12.1% over 11.1% in the fourth quarter of 2008. Therefore, the fourth quarter is expected to further reduce inventory.