[Asia Economy Reporter Kim Suhwan] As the global semiconductor supply shortage shows no signs of easing, the lead time from semiconductor orders to shipment has reached a record high of 18 weeks. In particular, power management semiconductors, which supply power to smartphones and industrial machinery, reportedly require a wait of more than six months.
According to Bloomberg News on the 22nd (local time), the lead time, which measures the elapsed time between semiconductor order date and delivery date, increased by 7 days compared to the previous month as of May, totaling 18 weeks.
This marks the highest level since Susquehanna Financial began compiling statistics in 2017.
Specifically, the extended lead time of power management semiconductors, which control electrical flow in industrial machinery and smartphones, was the main contributing factor. The lead time for these semiconductors averaged 25.6 weeks, about 2 weeks longer than the previous month.
Chris Roland, an analyst at Susquehanna, analyzed, "The global semiconductor supply shortage issue is reflected in this lead time statistic."
He added, "As the semiconductor supply shortage remains unresolved, customers have engaged in semiconductor panic buying, which could lead to a long-term oversupply problem in the semiconductor market."
Bloomberg News identified major manufacturers with increased semiconductor lead times, including Broadcom, NXP, and Texas Instruments.
This semiconductor supply shortage has also extended vehicle delivery times, severely impacting the automotive manufacturing industry. Bloomberg News projected that delays in delivery waiting periods could cause the automotive industry to incur losses totaling $100 billion (approximately 113 trillion KRW).
Additionally, it is reported that product receipt times for major IT companies, including Apple, are also being delayed.
However, analysis suggests that changes in customer contract practices have also contributed to the increase in lead times.
Hock Tan, CEO of Broadcom, stated, "The increase in lead times is partly due to customers beginning to enter into long-term contracts with semiconductor manufacturers. In the past, the semiconductor foundry market was dominated by short-term contracts, but it seems that customer contract practices are shifting toward more stable semiconductor supply."
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
