The Economic Daily reported on April 12 that the lead time for semiconductor packaging has been extended to 50 weeks.
IC design services consultancy Sondrel pointed out that due to the change in the scheduled capacity sequence of the semiconductor supply chain, as well as the time required for packaging new capacity to be in place and personnel training, the packaging lead time has been extended to 50 weeks. In the early days of the outbreak of the new crown epidemic, packaging factories were faced with the situation of customers cutting orders. With the recovery of semiconductor production capacity, packaging factories are setting up new production capacity and training operators. It will take time to completely solve a large number of orders.
Chip Package Lead Time Extended to 50 Weeks
Sondrel analyzed that the order of production capacity in the semiconductor supply chain has changed in the past. In the past, the IC design end was completed first and then handed over to wafer manufacturing for about 12 weeks. At the same time, the packaging details will also be prepared by the packaging factory before entrusting the foundry.
The current situation is that it takes at least 20 weeks for package design and production capacity to be completed before semiconductor design to ensure that wafer fabrication and packaging can be completed together. If the above-mentioned new semiconductor manufacturing process mode is not noticed, the chip production cycle will be delayed, and the time course will be extended to about 40 weeks.
ASE Investment Control, a major packaging and testing company, previously pointed out that the semiconductor industry continues to expand capital expenditure, equipment delivery continues to extend, and the supply of wafers, carrier boards, lead frames, etc. is still tight. However, according to customer information, semiconductor capacity and supply chain constraints will continue beyond 2023.
MCU and PMIC to Bear the Brunt of Lead-time Extending
This year, the global epidemic continues to recur, coupled with natural and man-made disasters such as the Russian-Ukrainian war and the earthquake in Japan, which will undoubtedly continue to increase the pressure on chip supply. Lead times have increased for most chips, including power management, microcontrollers, analog chips and memory chips.
Source: Susquehanna Financial Group
The latest data from market research firm Susquehanna Financial Group showed that the wait time for global semiconductor deliveries increased again in March and reached a new high of 26.6 weeks.
The MCU is the most in short supply. In February, its delivery time was as high as 35.7 weeks (over 8 months); the shortage of power management ICs was second to that of MCUs, and its delivery time was extended by 1.5 weeks. Both categories are essential components in many electronic products as well as the automotive field.
In 2019, a downturn in the automotive industry and a weak global economy led to a 9% drop in MCU shipments. However, in 2020, the demand for the consumer electronics industry affected by the Covid-19 has increased, which driven demand for MCUs, resulting in an 8% increase in shipments.
Source: Yole
After a short period of relief, the situation of chip shortage in the global automotive has intensified again, and global automotive companies such as Ford, Toyota, and Volkswagen have cut production plans. The latest data shows that due to the shortage of chips, the global auto market has cut production by about 920,000 units this year, while the previous estimate was only 650,000 units. Companies such as STMicroelectronics, Infineon, NXP, and Renesas have nearly full orders for automotive MCUs in 2022, and IDM manufacturers continue to expand their MCU outsourcing share, which also confirms the shortage of MCU production capacity.
Source Electronic Components at Hard Find Electronics LTD.