Commodity Solution Lead at The Smart Cube, Hemant Bansal, sees lead times for electronic components increasing by more than 15 weeks in the first part of 2022.
According to analysis by Goldman Sachs, over 160 industries have been affected as a result of the global electronic component shortage. The industries which have been hit hard by the shortage include the automotive and consumer electronics sectors. A number of factors have caused this shortage of electronic components across industries, including:
- Increased demand for semiconductors
- Lean inventories
- COVID-19 pandemic
- Geopolitical conflicts and tensions, such as the ongoing war between Russia and Ukraine
According to Hemant Bansal, Commodity Solution Lead at The Smart Cube, these aforementioned factors have resulted in lead times for electronic components increasing by more than 15 weeks in the first part of 2022.
“Typically, electronic components, such as capacitors and resistors, have a lead time of 16–18 weeks,” said Bansal. “However, a rise in the demand for semiconductors, coupled with the ongoing Russia–Ukraine conflict, US–China trade war and recurring lockdowns around the world – due to the emergence of new COVID-19 strains – means an immense amount of pressure and strain has been put on supply chains. This has caused lead times for semiconductor orders to increase significantly. As of February 2022, lead times were five to 15 weeks longer than they were in October 2021.”
