In August, the waiting period for chip orders reached a new record of 21 weeks. The auto industry will lose 110 billion US dollars!
2021-10-09

We are about to enter the fourth quarter of 2021, is the global chip shortage situation getting better? The answer is expected to disappoint many.

According to the latest data released by Susquehanna Financial Group, the chip delivery time in August increased by 6 days from the previous month to about 21 weeks, which is the longest delivery time since 2017.

This shows that the chip shortage that affects global car production and even hinders the growth of the electronics industry is still worsening. Susquehanna analyst Chris Rolland pointed out in a research report that the lead time of Analog chips and Broadcom chips has been further extended, but the good news is that there are some positive signs in the field of power management chips and optoelectronic components.

While lead times for Analog and Broadcom Inc. chips have increased, there are positive signs in power management chips and optoelectronic components, Susquehanna analyst Chris Rolland said in a research note.

Shortages of semiconductors have reportedly hampered the recovery of companies from the Covid-19 pandemic, especially automakers. Global consulting firm AlixPartners estimates the global auto industry will lose about $110 billion in sales.

IHS Markit also warned in a report earlier this month that global light-vehicle production could fall by 5 million this year due to semiconductor shortages and delays in chip packaging and testing.

At present, many world-renowned car companies have been shut down due to lack of cores, and some industry executives are even worried that this problem may continue until 2023.

GM said in a statement on Thursday that it would cut output at six North American assembly plants due to chip shortages. Earlier this month, the company had been forced to temporarily halt production at most of its North American assembly plants. Chrysler parent Stelantis NV also said last week that it would further cut output at three plants in the U.S. and Canada.

It is reported that the Biden administration of the United States is currently planning to hold a meeting with American semiconductor supply chain companies again this week to jointly negotiate to alleviate the shortage of cores in the market. Commerce Secretary Gina Raimondo and National Economic Council Director Brian Deese will host the meeting at the White House on September 23.