Lead times for microchips grew to 25.8 weeks in December 2021, an increase of six days from November, setting a record for the longest lead time since data tracking started in 2017, according to a report by to Bloomberg quoted Susquehanna Financial Group.
“The rate of lead time expansion has been choppy, but picked up again in December,” Susquehanna analyst Chris Rolland is reported to have said on Tuesday. “Lead times for nearly every product category witnessed all-time highs, with power management and MCUs (microcontrollers) leading the charge.”
Bloomberg stated that in the past, lengthening lead times have been followed by painful periods of oversupply. The concern is that customers may try to purchase more than they need now in an effort to ensure they get chips and will later cancel the requests, which the industry calls double ordering.
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