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Chip Supply Getting Worse, Not Better

The global chip shortage is continuing to bite, with lead times for semiconductors now stretching beyond 20 weeks.

Companies that order semiconductors are now having to wait an average of 20.2 weeks for delivery, according to new research by Susquehanna Financial Group reported in Bloomberg; this is an eight-day increase from June, which was itself the longest lead time since 2017, when Susquehanna began tracking.

While lead times for power management chips have shrunk, microcontrollers – which handle logic processes in products like smart home devices and cars – have ballooned to 26.5 weeks, far above the usual six-to-nine-week waiting period.

Analysts have predicted grim tidings for the industry as the chip drought continues, with some saying the shortage may last beyond next year into 2023. The auto industry is particularly suffering, with more than $100 billion USD ($135.6 billion AUD) in lost sales forecast, but consumer products such as game consoles and graphics cards are also affected.

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