Wait times for semiconductor deliveries extended slightly in March and hit a new record as the outbreak in China and the earthquake in Japan further hampered supply.
Lead time — the time interval between chip ordering and delivery — rose by two days to 26.6 days last month, according to research by Susquehanna Financial Group.
While chip users are again facing longer wait times, delivery times have slowed significantly less than in 2021, when many industries were forced to cut production due to a lack of critical components.
Lead times have increased for most chip types, including power management, microcontrollers, analog chips and memory chips, according to a report by Susquehanna analyst Chris Rolland. The war in Ukraine, the outbreak in parts of China, and the earthquake in Japan “will have a short-term impact in the first quarter and possibly a lasting impact on severely constrained supply chains throughout the year,” he said.
A global semiconductor shortage began in the first half of 2020 as the pandemic spurred demand for consumer electronics and automobiles. Semiconductor makers have previously invested less in increasing factory output, while a sudden shortage of chips has disrupted the production of everything from smartphones to pickup trucks, spurring inflation by raising supply costs.
Chip industry executives have cautioned that some customers won’t get enough supplies until 2023. Most of the new factories built by companies such as Intel will not start production until next year at the earliest.
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