PASADENA, CA – The worldwide shortage of semiconductors is expected to last for years to come amid increasing risk and supply constraints.

New Supplyframe market intelligence indicates that significant shortages will continue through the first quarter of 2023 at a minimum.

The research firm's third quarter report (CIQ) revealed a 77% growth of “red” dimensions in the supply and demand market dynamics heat map, which was previously a mix of yellows and reds. The CIQ also highlighted that there has been an increase in component prices of up to 40% as compared to last quarter.

Analog device lead times are becoming longer as buffer inventory has now been committed, the report says. The new average lead times are between 25 and beyond 52 weeks – and, in some cases, up to 60 weeks.

The latest data come as semiconductor production and testing have been hampered by a water shortage and Covid-19 outbreaks in Taiwan, where nearly half of the world’s semiconductors are manufactured. CIQ diagnoses major electronic commodity groups and subgroups, including the far-reaching and interconnected Covid-19 impacts that remain in the form of steep demand recoveries, extended lead times, and dramatic raw material and component price escalations.

As automotive companies rounded out the first half of 2021, the electronic component shortage worsened sequentially, and also against the baseline of demand and supply availability in the third quarter of 2020. Supplyframe availability measures also indicate that the percentage of chips out of stock by the top four manufacturers serving the automotive sector worsened by 14 points quarter over quarter and by 22 points vs. the baseline (2020 Q2-2020 Q4).

The data are derived from real-world insights and commodity management expertise of industry leaders and Supplyframe DSI Network partners, including more than 500 companies across the electronics value chain, including global manufacturers, EMS providers, distributors, semiconductor and component suppliers.

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