Lead times have dropped by about seven days across all market segments, says SourceEngine, but PEMCO (Passives, Electromechanical and Connectors) segments have seen lead-time rises of a few days.
Semiconductor Lead Times Drop and Passives Rise
Can you believe we’ve already made it through the first half of the fiscal year? Time flies when you’re having fun. The summer sun is heating up, the temperature is rising, and so too is the chip war. Sanctions between the United States and China have partially derailed the global electronic component supply chain’s recuperation. China’s latest export restriction on gallium and germanium, two elements that are critical in semiconductor manufacturing, could further amplify the raw material shortages affecting PEMCO market segments. Advanced digital components, such as CPUs, are expected to come out of a longlasting gallium and germanium drought unscathed. Still, it would affect peripheral components such as LEDs and fiber optics.
Macroeconomic pressures continue to impact consumer demand. There was hope that orders would pick up during the shopping festival in China to mitigate some of the excess
electronic component inventory. This did not happen.
Excess inventory continues to impact the semiconductor industry, with DRAM and NAND experiencing some of the worst drops. However, memory giants, Samsung Electronics and SK Hynix, believe that Q3 2023 will be the beginning of a revival in the memory market.
By David Manners 11th September 2023 I. Electronicsweekly.com