The wait times for companies looking for chipsets have risen even further. In August, the industry has hit a record 21 weeks lead time, which is indicative of the global chip shortage issue worsening over time.
For those unaware, the world is facing a shortage of semiconductors at the moment. This has affected various industries across the globe, including the automobile, consumer electronics, and others. Lack of chips has led to carmakers halting production, while the electronics industry’s growth has also been stunted. According to research from Susquehanna Financial Group (Via Bloomberg), the lead times for chips has risen again and reached 21 weeks last month.
This marked a lead time rise of 6 days over July 2021. In layman’s terms, the gap between companies placing an order for semiconductors and receiving delivery has been on the rise. Back in July, we had reported on wait times hitting a record 18 weeks. As of right now, the gap is the longest wait times ever since the firm began tracking semiconductors since 2017.
Furthermore, the report found that the lead times for analog and Broadcom chips have also gotten worse, but the power management chips and certain optoelectronic components have seen a positive trend recently. Notably, the shortage of semiconductors have also impacted recovery from the Coronavirus pandemic. This holds especially true for the automobile industry, with reports suggestions that the entire automotive industry will lose around 110 billion US Dollars in sales.
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