These chip-starved industries, from automaking to consumer electronics, will have to wait longer to get components as delays in order deliveries grow.
Chip lead times — the time between ordering semiconductors and picking them up — jumped seven days to 18 weeks in May from the previous month, according to research by Susquehanna Financial Group, as signs chipmakers struggled to keep up with demand deteriorating.
The aforementioned delivery time is already the longest wait time since the agency began tracking the data in 2017, and is more than four weeks longer than the previous peak in 2018.
Investors are watching delivery times for clues about demand trends, but it could also indicate that chip users may be over-ordering in panic, which would mean the industry is heading for an oversupply.
Susquehanna analyst Chris Rolland said he was concerned that demand for terminal equipment would not be enough to support current order levels.