According to research by Susquehanna Financial Group, the watched lead time last month increased by four days from October to approximately 22.3 weeks. This waiting time set the longest record since the company started tracking data in 2017.
This is undoubtedly a setback for industries that need more chips. Various companies, including Apple and Ford Motors, have complained that they cannot meet customer demand for products, while costs are rising. The growth rate of chip delivery time has slowed in October, igniting optimism that the situation is improving.
"Although the growth has been shorter than most of the last few months, we had hoped for a significant reversal," Susquehanna analyst Chris Rolland said in a research report.
He said that the delivery time of power management chips and microcontroller chips has increased significantly. But no type of chip is immune. His verification showed that the supply pressure of many products will deepen into 2022.
Rolland also stated that he is changing the survey method and adding more data sources. Calculating with the new method, the average lead time exceeds 25 weeks.
For now, shortages have been a boon for many chip manufacturers. The Philadelphia Semiconductor Index rose more than 40% during the year, outperforming the S&P 500 Index.