Chip Lead Times Continue to Slow, Hinting at Ease in Crisis: Bloomberg

By Benzinga
Benzinga
Benzinga
October 27, 2021 Updated: October 27, 2021

Delivery times for chips in October posted their smallest gain in about nine months, signaling towards possible ease in crisis plaguing multiple industries, Bloomberg reports.

The lead times, which implies the gap between a semiconductor order and delivery time, increased by one day to about 21.9 weeks in October versus September, as per Susquehanna Financial Group.

Power management and optoelectronic chips were easily accessible in October, while the wait for microcontrollers, particularly those used by automakers, increased by up to six weeks.

Broadcom Inc’s lead times were “well off highs” as its situation improved.
However, Texas Instruments Inc, Infineon Technologies AG, and Microchip Technology Inc told their customers to wait longer.

“While some product categories may be loosening, checks with distributors still suggest supply pressure will remain into 2022 for power management” and other products, which include discrete chips, Wi-Fi modules, microcontrollers, and auto networking products.

In the past, extending lead times followed painful periods of oversupply. Concerns remain over the cancellation of orders by customers who were double ordering at present.

The chip crisis proved to be a boon for multiple chipmakers.

Price Action

AVGO shares closed higher by 2.26 percent at $533.87 on Tuesday.

By Anusuya Lahiri

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