Semiconductor chips shortage to normalise, lead time to be higher, claims report

Moody’s Analytics said in a report that the shortage of semiconductor chips that go into various items will normalize sometime next year while the lead times continue at a higher level.

“While we see lead times remaining elevated through the end of the year, we expect the chip shortage to normalise sometime in 2023,” said the report.

According to Moody’s Analytics, last month was the first time since the start of the pandemic that the lead time fell from 27.1 weeks to 27 weeks.

“While the decline is notable given the upward trend in lead times in the past couple of years, 27 weeks is still far from the norm, and we expect lead times to remain elevated going into 2023,” the report notes.