Time: 2022.10.19
Lead times -- the time difference between chips being ordered and delivered -- averaged 26.3 weeks in September, according to Susquehanna Financial Group. Compared with the nearly 27-week waiting period in August, the waiting period was shortened by 4 days.
Susquehanna analyst Christopher Rolland said in a research note that wait times decreased across all key product categories, with power management and analog chips seeing the largest declines.
A global shortage of chips has plagued industries over the past year, with automakers and other manufacturers struggling to get enough semiconductors. Supply constraints remain, but now many chipmakers worry about the opposite: excessive chip inventories.
Slower sales in certain markets, such as personal computers, led to lower-than-expected demand from Intel Corp. and AMD. Earlier this month, AMD's third-quarter sales missed expectations by more than $1 billion, and Intel was preparing to cut jobs to combat the decline.
Tensions between the U.S. and China have also clouded the future of the chip industry. The Biden administration this month announced new export curbs that limit what U.S. companies can sell to the Asian country.
The Philadelphia Stock Exchange Semiconductor Index is down 44% this year.
