13 Dec 2022 -
 General

Chip shortage: A long way from being officially over

chip lead times

If you’re looking for a definition of when the chip shortage will be over, Susquehanna Financial Group says it will officially end once average lead times fall to between 10 and 14 weeks. We are still a long way from that.

Although chip delivery times shrank by six days in October, the biggest drop since 2016, lead times — the gap between when a chip is ordered and when it is delivered — averaged 25.5 weeks in the period, according to Susquehanna. 

Electronic Design says, “Market watchers have said that while demand for chips is receding, it’s not yet enough to translate into the end of the broader chip shortages. Supply woes will continue for large swathes of the electronics industry into 2023, largely due to a dearth of less-advanced analog, power, and logic chips that are pinching the industrial, automotive, and other sectors.

“While major companies have been building more production capacity to counteract the chip drought, many still try to get through order backlogs totaling tens of billions of dollars built up during the pandemic.”

Read more here

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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