New research shows that chip delivery times are decreasing, but shortages remain a problem in many areas, Bloomberg reports.
According to Susquehanna Financial Group’s research, lead times (i.e., the time difference between semiconductor ordering and delivery) averaged 26.9 weeks in July, compared with a revised 27 weeks in June. Delivery times have been shortened for three consecutive months.
Chip lead times have been shortened for the third consecutive month, but shortages remain a problem
The study shows that while overall indicators have improved, the supply of power management components and microcontrollers, especially chips needed by automakers and industrial equipment manufacturers, remains tight. For example, lead times for power management chips increased from 31.3 weeks last month to 32 weeks in July. In addition, some product prices are still rising.
Susquehanna analyst Chris Rolland mentioned in a research note that the decline in demand in some areas of the semiconductor industry, particularly for components used in personal computers and smartphones, has not yet translated into a full end to the chip shortage. “Overall lead times are still more than twice as long as in ‘healthy’ markets,” He said.