Certain chips have caught up with demand, thanks to stockpiling and reduced consumer spending, but the semiconductor supply chain is still snarled up.
But the turnaround is far from uniform. Everstream’s data shows that lead times for some advanced chips needed for medical devices, telecommunications, and cybersecurity systems is around 52 weeks, compared to a prior average of 27 weeks.
“Anything automotive—or competing with capacity for automotive—is still highly constrained,” says Jeff Caldwell, director of global supply management at MasterWorks Electronics, a manufacturer of printed circuit boards, cables, and other electronics products.
The geopolitical picture may significantly increase global capacity to produce advanced chips. Legislationthe US Senate would provide $52 billion in subsidies to increase domestic chip production. The US share of global chip production has fallen from 37 percent in the 1980s to 12 percent today. But while chip shortages have been cited by those boosting subsidies, much of the money would go to reshoring production of advanced chips.