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Chip Delivery Times Shrank Rapidly in October as Supply Crunch Subsides

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A chip.

Semiconductors typically go through a complex production process that takes over three months but producers have been telling some of their customers that they’d have to wait as much as a year for some types of products.

Credit: Walter Yuen

Chip delivery times shrank by six days in October, the biggest drop since 2016, adding evidence that demand for electronic components is falling off quickly.

Lead times -- the gap between when a chip is ordered and when it is delivered -- averaged 25.5 weeks in the period, according to research by Susquehanna Financial Group.

All major product areas are now available more quickly than they were and 70% of the companies surveyed by Susquehanna say they're able to supply chips more swiftly, analyst Christopher Rolland said in a research note.

From Bloomberg
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