What They Say
Bloomberg reports that chip lead times have been going further out with power management chips which have slipped out to to 25.6 weeks according to Susquehanna Financial Group (SFG). However, many analogue and passive components have had extended lead times. SFG is concerned that orders are going up too much as in some areas are catching up with demand.
Some observers, including Broadcom CEO Hock Tan believe that the “lengthening period is evidence of a higher level of understanding of the semiconductor industry by their customers and new willingness to commit to long-term supply agreements that can’t be canceled”.
What We Think
If you missed it, see my earlier comments about my experiences of the impact on ordering of longer lead times from more than 40 years ago. Qualcomm struggles to meet chip demand for Samsung) (BR)
