2021 has been a hard year for semiconductors and according to a Bloomberg report, the semiconductor shortage looks like it might continue to worsen. The lead timesĀ for OEM and Chip designers like AMD and Nvidia have been extended. Recording its longest lead time since 2017 which is when Susquehanna Financial Group started tracking that data.

Right now the semiconductor’s lead times have extended to 20.2 weeks for advanced semiconductors and while items such as Microcontrollers and logic, chips have extended the lead times to 26.5 weeks. This means that there is a potential for the chip shortage get worse as lead times continue to rise. We are approaching Q4 after all which is when demand should be at its peak.

Currently we are seeing a reduction in GPU scalper prices and there is a decent CPU stock. Chip designers such as AMD, Apple, and Intel. We Will need to continue to stockpile their chips as we approach Q4 in order to keep levels at a decent threshold. Luckily these are some of the largest brands in the world with the resources to do so. But if the lead times continue to extend then we could be see shortages popping up again during Q4 or Q1 of next year.

It’s not all doom and gloom. TSMC and other experts in the industry are predicting that the current tech shortage should be ending in 2022 or 2023. So we should expect by the end of next year to be back in normal supply. Different market segments will recover quicker of course.

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