[Attention] The Overall Delivery Time Of Chips in July Is More Than 5 Months! The Supply Shortage Shows No Sign Of Abating

The global shortage of chips continues to worsen, according to a new study that found that companies are waiting more than 20 weeks for chips to arrive from the time they place orders, Bloomberg reported.

According to Susquehanna Financial Group, the "lead time" for semiconductor procurement from order to delivery has stretched to 20.2 weeks in July, up more than eight days from the previous month. That's the longest wait since the company began tracking the data in 2017

The microcontroller shortage worsened in July, according to the report, with the lead time for such chips now at 26.5 weeks, compared with the usual 6-9 weeks. The good news, though, is that lead times for power management chips have been shortened.

The microcontroller is a logic chip that mainly controls the functions of automobiles, industrial equipment, and household electronic products. And power-management chips regulate the flow of electricity from smartphones to solar power. 

The semiconductor supply shortage is most affecting the auto industry, which is expected to lose more than $100 billion in auto sales due to the inability to produce smoothly. Other areas are also affected, with many electronics makers, including the biggest companies such as Apple, unable to meet all the demand for their products.

The report cited concerns from market investors, including Broadcom CEO Hock, that excessive orders for extended lead times and the recent intense expansion in the chip industry could create an oversupply situation Some leaders at chipmakers such as Tan say customers are more willing to make long-term supply commitments than in the past, so there is no need to read too much into extended lead times.

They see the extension as evidence of their customers' greater understanding of the semiconductor industry and their willingness to enter into long-term supply agreements that cannot be canceled.