Chip lead times increased in April

Susquehanna analyst Christopher Rolland is cited in several media reports saying that "accelerated lead times, the gap between ordering and delivery, often compels 'bad behavior' at customers". This may include anything from inventory accumulation over safety stock building to double ordering. The trends could have the semiconductor industry in the "early stages of over-shipment above true customer demand". The automotive industry, the hardest hit segment in the global semiconductor shortage, saw 22-week lead times for NXP Semiconductors and 28 weeks for STMicroelectronics products. PMICs saw lead times of 23.7 weeks in April; Industrial MCU lead times increased by three weeks and head phone IC lead times were up to 52 weeks. Rolland says the lead times are at the highest level since Susquehanna started tracking the data in 2017 and could well mean that the indusrty is entering a 'danger zone' for the ongoing chip crisis.