Semiconductor Lead Time Surpasses 20 Weeks... "Longest Ever"

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Kim Suhwan] As the global semiconductor supply shortage shows no signs of easing, the lead time from semiconductor orders to shipment has exceeded a record high of 20 weeks. In particular, microcontrollers, semiconductor chips that perform various functions within smartphones and industrial machinery, are reported to require a wait of more than half a year.

On the 10th (local time), Bloomberg News cited data from Susquehanna Financial, reporting that the lead time, which measures the elapsed time between semiconductor order date and delivery date, increased by 8 days compared to the previous month as of July, totaling 20.2 weeks.

This marks the highest level since Susquehanna Financial began compiling statistics in 2017.

Specifically, the increase in lead time for microcontrollers, system chips that perform various functions within industrial machinery and smartphones, is analyzed as the main factor behind the overall semiconductor lead time increase.

According to Susquehanna Financial, the lead time for microcontrollers is 26.5 weeks. This is significantly longer than the usual lead time of about 6 to 9 weeks.

However, Bloomberg News reported that the waiting period for power management semiconductors, which recorded the longest lead time in May, has somewhat decreased. Power management semiconductors control electrical flow in industrial machinery and smartphones. These semiconductors recorded an average lead time of 25.6 weeks in May, marking the longest waiting period among all semiconductor types.

Bloomberg News also reported that due to this semiconductor supply shortage, vehicle delivery times have increased, causing significant damage to the automobile manufacturing industry. The media forecasts that the delay in delivery waiting periods could result in losses totaling $100 billion (approximately 113 trillion KRW) for the automotive sector.

Additionally, it is known that product receipt periods for major IT companies, including Apple, are also being delayed.

However, there is also an analysis that the cause of this lead time increase is due to a shift in customer companies’ practices from short-term contracts to long-term contracts.

This content was produced with the assistance of AI translation services.