The Chip Crunch Grows Worse as Wait Times Hit Record 21 Weeks

The amount of time it’s taking for chip-starved companies to get orders filled stretched to 21 weeks in August, indicating that shortages are getting worse.

Bloomberg News

September 22, 2021

1 Min Read
The Chip Crunch Grows Worse as Wait Times Hit Record 21 Weeks

(Bloomberg) -- The amount of time it’s taking for chip-starved companies to get orders filled stretched to 21 weeks in August, indicating the shortages that have crippled auto production and held back growth in the electronics industry are getting worse.

Chip lead times, the gap between ordering a semiconductor and taking delivery, increased by 6 days to about 21 weeks in August from the previous month, according to research by Susquehanna Financial Group. That gap was already the longest wait time since the firm began tracking the data in 2017.

While lead times for analog and Broadcom Inc. chips got worse, there are positive signs for power management chips and optoelectronic components, Susquehanna analyst Chris Rolland said in a research note. 

Semiconductor shortages have hampered recovery from the Covid-19 pandemic, particularly for carmakers. AlixPartners, a global consulting firm, estimated the global automotive industry will lose about $110 billion in sales.

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