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World News See other World News Articles Title: Semiconductor Chips Face Longer Lead Times as Supply Chain Is Dealt Another Blow From China Lockdowns Semiconductor Chips Face Longer Lead Times as Supply Chain Is Dealt Another Blow From China Lockdowns The suffering supply chain, which has been stunted by covid restrictions in the form of lockdowns, are getting even worse as the world faces a severe shortage in computer chip manufacturing. Computer chips play an intricate part of our modern world and without them – well, we won’t be able to function as we are. According to Bloomberg, the wait times for semiconductor chips has risen yet again after China went back into lockdown in the city of Shanghai, one of the world’s largest port cities. An earthquake in Japan also hindered supply. Will Biden's Executive Order for Digital Money end the Dollar? Will Biden's Executive Order for Digital Money end the Dollar? Susquehanna Financial Group indicated that lead times have gone up by two days, making it now around 26.6 weeks (six months) before the chips are delivered to customers. Bloomberg News reported: While chip users are facing longer wait times again, the lead times are growing much slower than in 2021, when many industries were forced to slash their production because of a lack of the critical components. Lead times increased for most chip types, including power management, microcontrollers, analog and memory, according to a report by Susquehanna analyst Chris Rolland. The pandemic lockdowns in parts of China, the quake in Japan and the new war in Ukraine all “will have a short-term impact in the first quarter but may have lingering effects on the severely constrained supply chain through the year,” he said. First world countries are suffering the most at the delays and the shortages literally have an impact on economies around the globe – the most affected areas are the U.S., Europe and Asia as smartphones and other devices need the chips to operate. “Semiconductor producers had pared invested in increasing output from their factories, and the sudden scarcity of chips disrupted production of everything from smartphones to pickup trucks. It also contributed to inflation by boosting supply costs,” Bloomberg News added. Industry executives and experts are now warning that the supply shortage will continue throughout 2022 and most of 2023. Manufacturers like Samsung and Intel will not be adding to their production until at least 2023, so supply will stay tight for the foreseeable future. Over 90 percent of the neon gas used to produce chips in the U.S, comes from Ukraine, and the war they are currently in with Russia, is only going to make things much worse as Ukraine has already moved to cut off exports of much needed grain and wheat and worryingly, neon supplies could be next. A research firm, Techcet stated that around 35 percent of the United States palladium, a rare earth mineral, comes from Russia and is used in the production of semiconductors. The Semiconductor Industry Association (SIA) has also said that “the semiconductor industry has a diverse set of key materials and gasses, so we do not believe there are immediate supply disruption risks related to Russia and Ukraine.” With the current murmurs of further lockdowns, following in the steps of China, could potentially knock the supply of these chips back years. Post Comment Private Reply Ignore Thread
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