Industry News

Chip Delivery Time Shortened for 3 Consecutive Months

Update time : 2022-08-15 17:38:41

It's reports that the latest research data from Susquehanna Financial Group shows that 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.
The study shows that while overall indicators of Electronic Components lead times have improved, the supply of power management components and microcontrollers, especially those needed by automakers and industrial equipment manufacturers, remains tight. For example, the delivery time 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 said that the decline in demand in certain areas of the semiconductor industry, especially components used in personal computers and smartphones, has not yet translated into the full end of the chip shortage. He noted in the report that the overall chip delivery cycle is still more than twice as long as the 'healthy' market."
As the industry knows, the chip shortage that has persisted since the second half of 2020 has brought a severe blow to various industries around the world. Earlier this year, Apple, Ford and other companies also reported facing billions of dollars in lost revenue due to the inability to obtain sufficient supply of semiconductors to meet product demand. But for some areas, the situation has reversed in a big way.
Earlier this week, companies such as Nvidia and Intel warned of a steep drop in demand from personal computer makers. Micron Technology said the consumer side, including owners of large data centers that serve as the backbone of Internet and enterprise networks, are starting to slow down their chip purchases.
Desktop processor shipments fell to their lowest level in nearly 30 years in the second quarter, according to Mercury Research, highlighting the decline in computers. Total processor shipments experienced the biggest year-over-year decline since 1984, analyst Dean McCarron said.
While the overall market for expensive server processors declined, AMD's second-quarter sales bucked the trend, growing and gaining share for the 13th consecutive quarter, he said in a report. Although second-quarter revenue was not affected too much, AMD still issued gloomy earnings estimates, indicating bearish third-quarter demand for personal computers.

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