The delivery times for semiconductors fell by a day in June, Bloomberg reported, a sign of modest relief after chronic shortages that have plagued automakers and other industries for over a year.
The report, citing research by Susquehanna Financial Group, said lead times, a closely watched gap between when a semiconductor is ordered and when it is delivered, averaged 27 weeks last month compared with 27.1 weeks in May. The wait was also 27 weeks in April.
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“There are some signs of supply chain inflation easing and price increases slowing, but other pockets remain,” Susquehanna analyst Chris Rolland in a research note cited by Bloomberg, adding: “Among key companies we track, none posted record-high LTs, perhaps another sign of ‘peak cycle.’”
Manufacturers wait for chips lessens
Susquehanna reportedly said leading or predictive company-specific data showed contractions in lead times for the second consecutive month with some declines of as much as 45%. Some of the largest declines were for microcontroller units, or MCUs, as well as power management and memory chips.
Field-programmable gate arrays, or FPGA, lead times remain “maxed out at our 52-week cap and are likely the most constrained part in the ecosystem,” the Susquehanna report said. It added FPGA shortages affect networking, optical and telecommunications gear.
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By GlobalDataAccording to Bloomberg, Citibank analysts forecast this week semiconductor sales would rise 13% for 2022. But they cautioned about risks because of a downturn in personal computers and smartphones, along with their projection of a recession.
