Bloomberg: Chip lead time exceeds 20 weeks

According to Bloomberg quoted Susquehanna Financial Group’s research, the chip lead time reached 20.2 weeks in July, an increase of more than 8 days from the previous month. This is the longest lead time since the company started tracking relevant data in 2017.

The report pointed out that the shortage of microcontrollers intensified in July. The lead time for this type of chip was 6 to 9 weeks before the shortage, and now it is 26.5 weeks. Conversely, the lead time of the power management chip is shortened.

The report predicts that the automotive industry will lose more than $100 billion in auto sales due to chip shortages. In addition, even Apple, the world’s largest buyer of electronic components, cannot avoid the impact of shortages on its sales performance.

With the extended chip lead time, buyers have little initiative in the terms and conditions when purchasing chips. Chip supplier executives said that customers are more willing to make long-term supply commitments than in the past.