(Bloomberg) — Lead times for semiconductor deliveries increased slightly in March and reached a new high, following lockdowns in China and an earthquake in Japan further hampered supply.
Lead times (the delay between ordering and delivery of a chip) increased by two days to 26.6 weeks last month, according to research from Susquehanna Financial Group.
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Waiting Game | Lead times for chip deliveries rose modestly in March
While chip users are facing longer wait times once more, these are growing much more slowly than in 2021, when many industries were forced to cut production due to a lack of critical components.
Lead times have increased for most types of chips, including power management, microcontroller, analog and memory chips, according to a report by Susquehanna analyst Chris Rolland. The war in Ukraine, Covid-19 in parts of China and an earthquake in Japan “will have a short-term impact in the first quarter, but may have lingering effects on the severely constrained supply chain through the year,” he said.
The global shortage of semiconductors began in the first half of 2020 due to the surge in demand for consumer technology and vehicles fueled by the pandemic. Semiconductor producers had cut back on investments to increase output from their factories, and sudden chip shortages disrupted production of everything from smartphones to pickup trucks. It also contributed to inflation by increasing the costs of supplies.
Chip industry executives have warned that some customers will struggle to get enough supplies through 2023. Much of the massive increase in new plant construction by companies like Intel Corp. won’t bring production online before next year.
original note:
Wait Times for Chips Grow Again in March as Shortages Drag On
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