Communications of the ACM
Chip Production Lead Times Shrink As Cyclical Downturn Takes Shape
The semiconductor industry is working through excess inventories of memory chips and PC processors, which are in a cyclical downtrend. Industrial, automotive, and communications chips have yet to correct.
Credit: iqsdirectory.com
Semiconductor lead times shrank by a significant amount in October, a sign that a broader chip-cycle downturn could be coming. Concerns about a downturn have hammered semiconductor stocks this year.
In October, semiconductor lead times fell six days to 25.5 weeks, Susquehanna Financial Group analyst Christopher Rolland said in a note to clients Thursday.
"This is the largest contraction yet this cycle, and the second consecutive meaningful decline in a row," Rolland said.
It's also the largest contraction since Susquehanna started collecting data on chip lead times in 2016. Lead times measure the time between a customer placing an order and receiving the product.
From Investor's Business Daily
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