• Advertise
  • Contact Us
  • Supplier Directory
  • SCB YouTube
  • About Us
  • Login
  • Subscribe
  • Logout
  • My Profile
  • LOGISTICS
    • Air Cargo
    • All Logistics
    • Facility Location Planning
    • Freight Forwarding/Customs Brokerage
    • Global Gateways
    • Global Logistics
    • Last Mile Delivery
    • Logistics Outsourcing
    • LTL/Truckload Services
    • Ocean Transportation
    • Parcel & Express
    • Rail & Intermodal
    • Reverse Logistics
    • Service Parts Management
    • Transportation & Distribution
  • TECHNOLOGY
    • All Technology
    • Artificial Intelligence
    • Cloud & On-Demand Systems
    • Data Management (Big Data/IoT/Blockchain)
    • ERP & Enterprise Systems
    • Forecasting & Demand Planning
    • Global Trade Management
    • Inventory Planning/ Optimization
    • Product Lifecycle Management
    • Robotics
    • Sales & Operations Planning
    • SC Finance & Revenue Management
    • SC Planning & Optimization
    • Supply Chain Visibility
    • Transportation Management
  • GENERAL SCM
    • Business Strategy Alignment
    • Customer Relationship Management
    • Education & Professional Development
    • Global Supply Chain Management
    • Global Trade & Economics
    • Green Energy
    • HR & Labor Management
    • Quality & Metrics
    • Regulation & Compliance
    • Sourcing/Procurement/SRM
    • SC Security & Risk Mgmt
    • Supply Chains in Crisis
    • Sustainability & Corporate Social Responsibility
  • WAREHOUSING
    • All Warehouse Services
    • Conveyors & Sortation
    • Lift Trucks & AGVs
    • Order Management & Fulfillment
    • Packaging
    • RFID, Barcode, Mobility & Voice
    • Warehouse Automation
    • Warehouse Management Systems
  • INDUSTRIES
    • Aerospace & Defense
    • Apparel
    • Automotive
    • Chemicals & Energy
    • Consumer Packaged Goods
    • E-Commerce/Omni-Channel
    • Food & Beverage
    • Healthcare
    • High-Tech/Electronics
    • Industrial Manufacturing
    • Pharmaceutical/Biotech
    • Retail
  • THINK TANK
  • WEBINARS
    • On-Demand Webinars
    • Upcoming Webinars
    • Webinar Library
  • PODCASTS
  • WHITEPAPERS
  • VIDEOS
Home » Global Supply Chain Management » Chip Crisis in ‘Danger Zone’ as Wait Times Reach New Record

Chip Crisis in ‘Danger Zone’ as Wait Times Reach New Record

Silicon wafers
A technician monitors the manufacture of silicon wafers in Silicon Valley. Photo: Bloomberg.
May 19, 2021
Bloomberg

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.”

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

Chip shortages are rippling through industry after industry, preventing companies from shipping products from cars to game consoles and refrigerators. Automakers are now expected to lose out on $110 billion in sales this year, as Ford Motor Co., General Motors Co. and others have to idle factories for lack of essential components. That’s undercutting economic growth and employment, as well as raising fears of panic ordering that may lead to distortions in the future.

The chip industry and its customers watch lead times as an indicator of the balance between supply and demand. A lengthening of the gap indicates that buyers of semiconductors are more willing to commit to future supply to avoid a recurrence of shortfalls. Analysts track these numbers as a harbinger of hoarding that can lead to the accumulation of too much inventory and sudden declines in orders.

“Elevated lead times often compel ‘bad behavior’ at customers, including inventory accumulation, safety stock building and double ordering,” Rolland wrote. “These trends may have spurred a semiconductor industry in the early stages of over-shipment above true customer demand.”

The situation has been complicated by a resurgence of coronavirus cases in Taiwan, a key location for chip manufacturing. The country has closed schools, curbed social gatherings, and shut museums and public facilities. While businesses and factories are operating, the government may have to consider broader restrictions.

The country is home to Taiwan Semiconductor Manufacturing Co., which is the world’s most advanced chipmaker and counts Apple Inc. and Qualcomm Inc. among its many customers. Local manufacturers also produce less glamorous — but equally critical — chips, such as display driver ICs that have been a particularly painful bottleneck for global production.

The current level of 17 weeks climbed from the 16-week level and marks a fourth consecutive month of “sizable” expansion, Rolland wrote.

Lead times for certain products are increasing sharply, even after months of shortages. Power management chips, for example, spiked to 23.7 weeks in April, a wait time about four weeks longer than a month earlier, according to Susquehanna. Industrial microcontrollers order lead times extended by three weeks, some of the steepest increases Rolland has seen since he began tracking the numbers in 2017, he wrote.

Delays are often worse for smaller manufacturers, with headphone makers facing lead times longer than 52 weeks, according to people familiar with the supply chain. This has forced companies to redesign products, shift priorities and, in at least one case, completely abandon a project, said one of the people, asking not to be named because the information is not public.

About 70% of the companies that Rolland tracks have expanding lead times, compared with 20% that have seen lead times contract. NXP Semiconductors NV, a major auto chip supplier, has lead times of more than 22 weeks now, up from around 12 weeks late last year. STMicroelectronics NV, another key auto chip supplier, saw lead times rise by more than four weeks in April to more than 28 weeks.

Such outsized increases may reflect over-ordering by some customers, who could be concerned about the impact of shortages on their businesses. Historically, companies have been able to cancel chip orders without penalty, although that has begun to change.

“Beginning with January data, we have witnessed numerous large JUMPS in reported LTs,” Rolland wrote, referring to lead times. “Whereas in prior years, an individual company would typically move their stated LTs up and down just a few days in a given month, starting this year we have seen significant jumps in LTs that have skewed our data.”

    RELATED CONTENT

    RELATED VIDEOS

    Global Supply Chain Management Global Trade & Economics Supply Chain Security & Risk Mgmt Automotive High-Tech/Electronics Retail
    • Related Articles

      Chip Crisis Baffles Congress in a World Where U.S. Output Lags

      Airport Security Wait Times Soar as DHS Funding Fight Stalls

      Mexico Border Wait Times Spike as Trump Threats Slow Traffic

    • Related Directories

      Tecsys, Inc.

    Bloomberg

    VW Makes a Loss in China, Sparking Urgent Call for Cost Cuts

    More from this author

    Subscribe to our Daily Newsletter!

    Timely, incisive articles delivered directly to your inbox.

    Featured Product

    Popular Stories

    • AERIAL VIEW OF A SHIPYARD SUPERIMPOSED WITH CYBERSECURITY SYMBOLS

      The Software Risk Hiding in Modern Supply Chains

      Business Strategy Alignment
    • GEARS MANUFACTURING iStock-bernie_photo-2219946641.jpg

      Five Current Challenges Preventing Real-Time Visibility in Connected Manufacturing

      Last Mile Delivery
    • 001_v1-(540p).jpg

      Watch: Closing the Skills Gap in Supply Chain Talent

      Education & Professional Development
    • MULTIPLE CHAOTIC CHARTS ARE SUPERIMPOSED ON AN AERIAL SHOT OF A BUSY INTERNATIONAL PORT

      The Quest for Supply Chain Resilience Remains Challenging

      Supply Chain Visibility
    • A blue and red striped container ship with "HMM" written along the side in large white lettering, with a green deck and two yellow towers

      Global Dual-Fuel Shipping Fleets Tops 500 Vessels

      Ocean Transportation

    Digital Edition

    Scb q3 26 cover

    100 Great Supply Chain Partners 2026: The Secret to Supply Chain Success

    VIEW THE LATEST ISSUE

    Case Studies

    • Recycled Tagging Fasteners: Small Changes Make a Big Impact

    • A GRAPHIC SHOWING MULTIPLE FORMS OF SHIPPING, WITH A HUMAN STANDING AT THE CENTER, TOUCHING A SYMBOLIC MAP OF THE WORLD

      Enhancing High-Value Electronics Shipment Security with Tive's Real-Time Tracking

    • A GRAPHIC OF INTERLACING HONEYCOMBED ELEMENTS REPRESENTING GLOBAL BUSINESS TRANSACTIONS

      Moving Robots Site-to-Site

    • JLL Finds Perfect Warehouse Location, Leading to $15M Grant for Startup

    • Robots Speed Fulfillment to Help Apparel Company Scale for Growth

    Visit Our Sponsors

    4flow Amazon Freight Anaplan
    Arkieva AutoStore Blue Yonder
    Canadian National Railway Company Carton Cloud CoEnterprise
    Dassault Descartes Dexory
    Duravant E2Open EPG
    General Logistics Systems GEP Hy-Tek
    iGPS Knapp Korber
    Lyngsoe Odyssey Logistics OMP
    PeakAI Procurability Quinyx
    SAP Sikick Staples
    S&P Global Mobility Systech TADA
    Tive TransImpact US Bank
    Werner WSI
    • More From SCB
      • Featured Content
      • Video Library
      • Think Tank Blog
      • SupplyChainBrain Podcast
      • Whitepapers
      • On-Demand Webinars
      • Upcoming Webinars
    • Digital Offerings
      • Digital Issue
      • Subscribe
      • Manage Email Preferences
      • Newsletters
    • Resources
      • Events Calendar
      • 2026 Event Coverage
      • SCB's Great Supply Chain Partners
      • Supplier Directory
      • Case Study Showcase
      • Supply Chain Innovation Awards
      • 100 Great Partners Form
    • SCB Corporate
      • Advertise on SCB.COM
      • About Us
      • Privacy Policy
      • Contact Us
      • Data Sharing Opt-Out

    All content copyright ©2026 Keller International Publishing Corp All rights reserved. No reproduction, transmission or display is permitted without the written permissions of Keller International Publishing Corp

    Design, CMS, Hosting & Web Development :: ePublishing