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Chip Delivery Cycle Continues to Shorten

Chip Delivery Cycle Continues to Shorten

Source:our siteTime:2023-03-20Views:

Chip lead times have shortened for nine consecutive months, indicating that a roughly two-year chip shortage has passed, according to a new report from Susquehanna Financial.

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March 20 - Chip lead times have shortened for nine consecutive months, indicating that a roughly two-year chip shortage has passed, according to a new report from Susquehanna Financial.


The report notes that the current average lead time for semiconductors is four weeks below the historical peak in May 2022. Actual lead times may be shortening faster than expected, as distributors are reluctant to shorten lead times for fear of customer order cancellations.


Specifically, Microchip's lead times have been significantly reduced and Xilinx's lead times have fallen significantly in the past few months.


The report also notes that while suppliers such as Microchip, TI and NXP have seen their lead times fall rapidly, ST, Infineon and ON Semiconductor's lead times have remained relatively stable.


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