How little things chip away at the world’s economic recovery

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How little things chip away at the world’s economic recovery

Some industries face chip lead times of more than a year, as shortages prevent companies from supplying goods

Ian King

Shortages in the semiconductor industry, which have already slammed automakers and consumer electronics companies, are getting even worse, complicating the global economy’s recovery from the coronavirus pandemic.

Chip lead times, the gap between ordering a chip and taking delivery, increased to 17 weeks in April, indicating users are getting more desperate to secure supply, according to research by Susquehanna Financial Group. That is the longest wait since the US firm began tracking the data in 2017, in what it describes as the “danger zone”.

“All major product categories up considerably,” Susquehanna analyst Chris Rolland wrote in a note Tuesday, citing power management and analogue chip lead times, among others. “These were some of the largest increases since we started tracking the data.”..

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