Semiconductor lead times stretched once more in February, with buyers now having to wait more than 26 weeks, especially as demand for microcontrollers (MCUs) and power management chips is in short supply, and the improvement in lead times in January may be short-lived.
Research by Susquehanna Financial Group shows that the time from order to delivery for a wafer increased by 3 days in February to 26.2 weeks today. The chip delivery period counted by the agency in January had shortened, showing signs of improvement for the first time since 2019.
Although the chip delivery time has been extended once more, the growth rate is slower than most of 2021. despite this,Some industries have been hit significantly harder. For example, the February lead time for microcontrollers (MCU) was extended to 35.7 weeks, and the lead time for power management chips increased by one and a half weeks.
The global chip shortage in the first half of 2020, due to the COVID-19 outbreak and surging consumer demand for electronics and automobiles, led to disruptions in the production of products ranging from smartphones to pickup trucks. Companies lost significant revenue and passed on costs. To consumers, push up overall inflation.
The Biden administration had expected in January that the chip shortage would continue into at least the second half of this year, and some in the semiconductor industry even thought that some buyers might not be able to get all the necessary chips even into 2023.
To make matters worse, the two weeks since Russia’s invasion of Ukraine has led to the suspension of operations of Ingas and Cryoin, the two major Ukrainian neon gas suppliers, affecting regarding half of the neon gas used in the world’s chip manufacturing process, which may exacerbate supply problems and even lead to price increases.
Ingas and Cryoin supply 45% to 54% of the world’s semiconductor-grade neon gas, according to data obtained by Archyde.com. Market research agency Techcet estimates that last year, the world consumed regarding 540 tons of neon gas in wafer production.
After the Russian invasion, which intensified attacks on cities, plundered people and destroyed vital infrastructure, both companies ceased operations.
