Lead times – the gap between when a semiconductor is ordered and when it is delivered – averaged 26.9 weeks in July, compared with a revised 27 weeks in June, according to research by Susquehanna Financial Group. It was the third consecutive month that lead times narrowed.
Even while the general indication improved, the study found that there was still a shortage of power management components and microcontrollers, notably those utilised by automakers and producers of industrial equipment. For example, lead times for power management chips went from 31.3 weeks to 32 weeks in July. Some products’ prices continue to rise.
“In terms of the broader industry, we still wait for inventory and over-ordering issues to subside,” Susquehanna analyst Chris Rolland said.
Overall lead times are still more than twice what they would be in a “healthy” market, he wrote.
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