Posted on 01/07/2022 2:33:12 PM PST by blam
Delivery times for chips jumped in December, signaling the semiconductor shortage is worsening into the new year, according to research by Susquehanna Financial Group.
On average, lead times increased six days to approximately 25.8 weeks last month compared with November. This is the longest wait time since the firm began monitoring the data in 2017.
As a refresher, lead time is the gap between when a semiconductor is ordered and delivered. An increase would suggest chip shortages are persisting, and declines would indicate easing.
“The rate of lead time expansion has been choppy, but picked up again in December,” Susquehanna analyst Chris Rolland wrote in a note to clients on Tuesday.
“Lead times for nearly every product category witnessed all-time highs, with power management and MCUs (microcontrollers) leading the charge,” Rolland said.
Longer wait times for microcontrollers, particularly used by automakers, could spell out more trouble for new car production.
Rolland noted that companies are purchasing more inventory than they need to mitigate future chip disruptions. The pull forward is often called double ordering.
Semiconductor shortages have hampered many other industries, including electronics, heavy equipment, appliances, and other consumer durables that rely on automated applications.
The bottom line is supply chain disruptions continue and are possibly worsening despite President Biden’s pledge to fix the mess.
For now, the shortages have been a boon to chipmakers. Philadelphia Stock Exchange Semiconductor Index is up more than 200% since the COVID low in early 2020.
There are still no signs that lead times will peak this month.
Biden says this “new normal” is better.
Isn’t dependence on China wonderful
I go by all these new car dealers (Indiana) and the lots are about 30% full. Never seen anything like this in my lifetime.
I’m glad I’m no longer designing circuit boards for a living.
I hope Trump wins and spends his last four years destroying the evil ones. He deserves this and so do the people.
The delay ain’t just for vehicles.
The delay can impact any electronic whatever.
One of our sons had a leaky water softener under their kitchen sink about Thanksgiving. It did over $50 k damage
their home.
Their replacement dishwasher might be available about 1 May this year.
The lead time exploded at the beginning of 2021. I think most of us can figure out why.
Looking at the big picture, the more supply chain dependencies there are on faraway countries, different governments, long distance transportation arrangements, the greater the chance of instabilities. Nature of beast.
That many? I'd say the local (Kentucky) Chevy dealer is only about 10% full. And a friend of mine works at a Toyota dealership and he told me about 2 months ago that he had exactly ONE new vehicle on his lot.
Geez, I remember those.
No wonder the shipments aren't getting through.
Water Softener under Kitchen Sink????
chips in dips...
I guess the big guy got his 10% and so everything is ok now.
Won’t improve until the chip manufacturers lose the contracts to produce nanobots and graphene structures for mRNA Wuhan/Fauci virus jabs.
My local Ford Dealer in Indiana moves any new vehicles he might get within 24 hours. He says he pays no Ford Motor Credit Inventory Interest which amounts to a cost Saving of $35000./month.
He sells a lot of used vehicles he buys at local Auctions. He pays high prices but sells at even higher prices.
These purchasers of over priced used vehicles are really going to be underwater when market corrects in the next 1-1/2 years.
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