The shortage of the global semiconductor industry continues to worsen
Susquehanna Financial Group analyst Chris Rolland released a tracking report on the shortage of the semiconductor industry this week. The report shows that the shortage is continuing to worsen.
At present, the world is facing a semiconductor shortage problem and the delivery time of all semiconductor products are being delayed, from 16 weeks in March to 17 weeks in April.
This is also the longest delivery period since the company started tracking the data in 2017. The delivery period is the time it takes for the manufacturer to ship to the customer after the customer places the order.
Chris Rolland said that the continuous extension of the delivery period puts the entire industry in a dangerous zone, and the extension of the delivery period will also force more companies to produce bad behavior.
These bad behaviors are mainly inventory storage, inventory construction, and double ordering. Under normal circumstances, companies will not backlog too much inventory to avoid negative effects.
But now some companies hoarding inventory through double ordering seems to be considered the right approach: because semiconductor products are difficult to deliver and have inventory in order to continue to sell.
Although it seems that semiconductor products such as microchips are only used in some electronic devices, Rolland believes that the semiconductor shortage problem is actually affecting all industries.
Because too many things we use in our daily lives currently rely on chip control, not only mobile phones, computers, cars but also industrial control equipment also need chips.
Perhaps the industry most severely affected by the lack of semiconductors is the automotive industry. The lack of chips in the automotive industry has caused huge losses in the temporary shutdown of some factories.
It is worth noting that the extension of the delivery period mentioned at the beginning of the article to 17 weeks is only an average level, and the delivery period of some products is as long as 24 weeks or even exaggerated to 56 weeks.
At the same time, as the delivery period continues to lengthen, this, in turn, will stimulate more companies to double order, thereby causing more chaos in the entire semiconductor supply chain.