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.
If you think it’s bad now, just wait until China invades Taiwan. America should have the equivalent of a Manhattan Project building chip plants here at home. Furthermore, to the naysayers, we built the worlds largest building in 1945 in a swamp in 18 months.
“Isn’t dependence on China wonderful.”
Our supply chains have been stretched so far into Asia, that the clowns that allowed this to happen, don’t know what to do.
I expect this situation to worsen over the next 2 to 3 years.
On the bright side, Microchip is a US company with foundries in the US. Their semiconductors are appearing in large quantities at the distributors. Many designs will be redone just to use Microchip products simply because they are available.
Furthermore, to the naysayers, we built the worlds largest building in 1945 in a swamp in 18 months.
Those people don’t live here anymore.
Error: Microchip has foundries in Arizona.
Semiconductors are made from silicon, not graphene.
Here is what I have learned.
More than three months means maybe never.
In this case I believe its Taiwan and South Korea. But your overall point is correct.
Mostly silicon.
However:
When what market corrects?
Your original statement is invalid from all standpoints.
I'm a retired chip-maker. Never-mind, you seem to know everything.
I think the first chip made by Jack Kilby was made on germanium.
It appears we can thank President Trump for this.
Your statement to which I responded associated the chip shortage with pharmaceutical use of graphene. The two are not connected, retired chipmaker.
Time to pull out all the design plans for the old stuff and start making it again.
Silver is a better conductor than copper....
Building advanced semiconductors is more difficult than you can imagine.
Bob Noyce tried to create SemiTech which eventually made the USA a semiconductor super power.
He was in excellent health but died of a stress related heart attack at 62.
Intel’s HQ is named in honor of Bob Noyce.
Ahh you are wrong as is your source Wikipedia.
One of the biggest is in Phoenix, AZ (Intel)
Intel’s most advanced fab is in Portland and they have I think 6 there.
The fabs listed in Wikipedia by Intel have all been closed or torn down as they were obsolete 20 years ago.
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