13 Jul 2022 -
 General

Chip delivery lead times inch down: Bloomberg

The delivery times for semiconductors fell by a day in June, Bloomberg reported, a sign of modest relief after chronic shortages that have plagued industry for over a year.

The report, citing research by Susquehanna Financial Group, said lead times, a closely watched gap between when a semiconductor is ordered and when it is delivered, averaged 27 weeks last month compared with 27.1 weeks in May. The wait was also 27 weeks in April.

“There are some signs of supply chain inflation easing and price increases slowing, but other pockets remain,” Susquehanna analyst Chris Rolland in a research note cited by Bloomberg, adding: “Among key companies we track, none posted record-high LTs, perhaps another sign of ‘peak cycle.’”

Susquehanna reportedly said leading or predictive company-specific data showed contractions in lead times for the second consecutive month with some declines of as much as 45%. Some of the largest declines were for microcontroller units, or MCUs, as well as power management and memory chips.

Field-programmable gate arrays, or FPGA, lead times remain “maxed out at our 52-week cap and are likely the most constrained part in the ecosystem,” the Susquehanna report said. It added FPGA shortages affect networking, optical and telecommunications gear.

Bloomberg noted that companies like Apple and Toyota have lost sales due to the chip shortages. It’s reported that General Motors has more than 95,000 cars which cannot be sold because they are awaiting electronic parts.

To avoid electronics supply-chain disruptions, you may also wish to consult an expert in electronics component supply. With more than three decades of supply-chain expertise, Astute Electronics is ideally placed to work with you on your daily component requirements.

For more help with looking at supply chain options, contact Astute Electronics

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