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The demand in the chip market exceeds supply by 30%, according to experts
With the onset of spring, the shortage of semiconductor components can only worsen, according to analysts at Susquehanna Financial. Customers’ waiting times for orders will increase to an average of 14 weeks. Demand exceeds supply by 30%, and the market will return to equilibrium no earlier than next year.
Image Source: MarketWatch / iStock
As has been noted more than once, the current situation in the semiconductor component market is due to a combination of several factors. The pandemic is considered the main one, but in the case of the automotive industry, the established practice of scheduling of orders has become a trap for customers. The trade war between China and the United States has also affected the state of affairs in the industry, and recently a new cryptocurrency boom has been added to the unfavorable factors.
Lopez Research believes that demand for semiconductor components may decline in the coming months only as a result of global economic turmoil. Otherwise, it will remain at a high level, since most modern industrial products contain semiconductor components.
If the current situation poses a real threat for automakers, then the developers of semiconductor components will not suffer amid the crisis in the automotive market. Experts J.P. Morgan believes that demand exceeds supply by 10 to 30%, and it will take at least three to four quarters to rebalance, and it will take another quarter or two to rebalance stock. Customer order waiting times have already reached the values observed in 20221 during the first wave of the cryptocurrency boom. Thus, the market situation will not stabilize earlier than next year, if the experts’ calculations are correct.