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PASADENA, CA – The worldwide shortage of semiconductors is expected to last for years amid increasing risk and supply constraints, according to Supplyframe. Significant shortages will continue through the first quarter of 2023 at a minimum.

A recent report revealed 77% growth of “red” dimensions in the supply and demand market dynamics heat map during the third quarter, which was previously a mix of yellows and reds.

Supplyframe says there has been an increase in component prices of up to 40% compared to last quarter, and microchip analog device lead times are becoming longer as buffer inventory has now been committed. The new average lead times are between 25 and beyond 52 weeks – and, in some cases, up to 60 weeks.

The top four semiconductor manufacturers serving the automotive sector continue to struggle with shortage issues, which are only getting more dire. As automotive companies rounded out the first half of 2021, the electronic component shortage became worse in the second quarter on a sequential basis, and also against the baseline of demand and supply availability in the third quarter of 2020. The percentage of chips out of stock by the top four manufacturers serving the automotive sector worsened by 14 points sequentially and by 22 points vs. the baseline (second quarter 2020 through fourth quarter 2020).

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