The chip lead time continued to extend in December 2021 and hit a new high since Susquehanna counted the data, indicating that the continued shortage of components is still grim. For months, such shortages have been hitting industry revenue growth throughout the economic cycle.
Susquehanna Financial Group's research data shows that the chip delivery cycle in December last year increased by 6 days compared to november last year, about 25.8 weeks, which is the longest delivery time since the company began tracking the data in 2017. The lead time counted by Susquehanna refers to the time interval between the order and the actual delivery of the chip.
Susquehanna recently revised the method of calculating lead times, adding more data sources and revising previous calculations based on the new system.
From Apple (AAPL. LARGE COMPANIES LIKE US) TO F.US ARE LOSING BILLIONS IN REVENUE BECAUSE THEY CAN'T GET ENOUGH CHIP SUPPLIES TO MEET DEMAND FOR THEIR PRODUCTS. The companies also said the measures taken to acquire parts are also driving up costs.
Susquehanna analyst Chris Rolland said in a research note on Tuesday: "The delivery cycle of chips has fluctuated greatly recently, and the delivery cycle in December has been lengthened again." "Lead times have hit record highs in almost all product categories, with power management chips and MCU chips having the longest lead times."
In the past, after extended lead times, there was often a "oversupply period". Industry insiders worry that customers may buy more chips than they need to ensure they can get enough chips, and then cancel unwanted chip orders, which the industry calls "double orders."
The survey shows that while the average time is stretched again, some major suppliers are delivering products to customers in a more timely manner. According to the study, last December, Broadcom (AVGO. US) delivery cycle "slightly declined" to 29 weeks.