Chip delivery cycles continue to shrink

On March 17, 2023, according to the latest report from Susquehanna Financial, the chip delivery cycle has been shortened for nine consecutive months, indicating that a chip shortage of about two years has passed.

The report noted that the current average semiconductor lead time is four weeks below the all-time peak in May 2022. Actual delivery cycles may shorten faster than expected because distributors are reluctant to shorten delivery cycles for fear of customer cancellations.

Specifically, Microchip's delivery cycle has shortened significantly, and Xilinx's delivery cycle has dropped significantly over the past few months.

The report also noted that while suppliers such as Microchip, TI and NXP saw their delivery cycles decline rapidly, those of stmicroelectronics, Infineon and Anson Semiconductor remained relatively stable.