Chip delivery time in September was shortened by 4 days

The Susquehanna Financial Group report showed that the semiconductor delivery period in September was shortened by 4 days, the largest decline in years, indicating that the industry supply crisis is easing.

According to Susquehanna's research, semiconductor lead times (the time difference between ordering a chip and delivering it) averaged 26.3 weeks in September. This compares to nearly 27 weeks in the previous month.

Susquehanna analyst Christopher Rolland said in a research note that wait times were shrinking across all key product categories, with power management and analog chips seeing the biggest declines.

A global shortage of chips has plagued a large number of industries over the past year, with automakers and other manufacturers struggling to get enough semiconductors. Some supply constraints remain, but now many chipmakers are worried about the opposite: excessive chip inventories.

Slowing sales in certain markets, such as personal computers, kept demand from Intel Corp. and advanced micro-device companies lower than expected. Earlier this month, AMD's third-quarter sales missed expectations by more than $1 billion, while Intel Corp. was preparing to cut jobs in response to the economic downturn.

The Philadelphia Stock Exchange Semiconductor Index, a key benchmark for chip stocks, has fallen 44% this year.

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