Earlier this week Procurement Leaders reported that the semiconductor industry was struggling as demand from PC makers for their products fell at the quickest rate since the dotcom bubble burst in 2001.

Back then, chip makers were left with sky-high inventory levels, much of which they had no hope of shifting. The events of seven-years ago left an indelible scar on the industry, and forced companies such as Taiwan Semiconductor Manufacturing, to completely rethink their inventory management.

However, while stock levels are now traditionally far lower now than they were at the height of the dotcom boom, a recent note from Morgan Stanley to clients claimed that inventory levels “were not falling as quickly as expected” – which suggests that some companies are failing to learn the lessons of the past.

As we move into 2009 it could provide to be a costly memory lapse.