Chip Crisis in ‘Danger Zone’ as Wait Times Reach New Record
- Lead times have climbed to the highest level since 2017
- Automakers are expected to lose out on $110 billion in sales
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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 firm began tracking the data in 2017, in what it describes as the “danger zone.”