As the global chip shortage continues, orders need to be placed up to a year in advance

The chip shortages that have hobbled carmakers and computer makers are getting worse.

Us fintech firm Susquehanna International Group research shows that chip lead time (the time from order to delivery) increased by more than eight days from the previous month to 20.2 weeks in July, according to Bloomberg. That’s the longest wait since the company began tracking the data in 2017.

Shortages of microcontrollers, chips that control functions in cars, industrial equipment and home electronics, surged in July, the report said.

Lead times for such chips are now 26.5 weeks, compared with the usual six to nine weeks. The semiconductor shortage is most pronounced in the auto industry, where it is expected to affect more than $100 billion in sales.

Gm said last week that starting this week it would again stop assembly lines at several pickup plants because it did not have enough chips. The plants were back on track for only a week after shutting down in July, also due to a chip shortage.

But in relatively good news for the industry that relies on semiconductors, lead times for power management chips, which regulate electricity in everything from smartphones to solar power generation, are falling.

It comes at a time when companies in and out of the tech industry are feeling the pinch of chip shortages, with large companies like Apple unable to meet all the demand for their products. The shortage of chips has also stalled orders for laptops, printers, smartphones, videoconferencing equipment and other work equipment and driven up prices.

Some companies are under pressure to upgrade their computer hardware as they take steps to reopen offices and continue providing enterprise-class mobility tools for remote workers.

“Lead times for laptops and computing equipment are 10 to 12 weeks.” “It used to take a day or two.”

For the upcoming fall semester, Workman said, schools are scrambling to equip classrooms with video monitors, microphones and other tools so students can choose to take classes at home. But orders for monitors and microphones have been delayed.

Chip suppliers are operating at full capacity but are not expected to meet current demand until the end of the year.

Big global chip makers, including Intel Corp. and Taiwan Semiconductor Manufacturing Co., say they are adding new production plants to meet rising demand, but it will take about two years to reach full capacity.

Last month, Intel CEO Pat Gelsinger said he thought the semiconductor shortage could continue into 2023.

In recent weeks, Plantronics Inc., a California-based maker of high-end headsets and speakers for corporate video conferencing and collaboration tools, has been ordering computer chips for more than a year to make sure it has enough supplies.


Post time: Aug-11-2021