New research shows that chip lead times are shrinking, but shortages persist in many areas, according to the source. Lead times, or the time difference between semiconductor ordering and delivery, averaged 26.9 weeks in July, compared with a revised 27 weeks in June, according to research by Susquehanna Financial Group. Delivery times have been shortened for three consecutive months.
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While overall metrics have improved, the supply of power management components and microcontrollers, especially chips needed by automakers and industrial equipment makers, remains tight, the study showed. 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 said in a research note that declining demand in some areas of the semiconductor industry, especially components used in personal computers and smartphones, has yet to translate into a complete end to the chip shortage. “Overall lead times are still more than double that of the ‘healthy’ market,” he said.
