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Long lead time becomes norm for IT supply chains
Ninelu Tu, Taipei; Joseph Tsai, DIGITIMES 0

Taiwanese industrial IT product makers, including Foxlink, Delta Electronics, AcBel Polytech, FSP, and Winmate, have all warned that component shortages have become an issue that all supply chain companies need to deal with, as extensions in component deliveries have become a norm.

Lead time for delivering IT components has mostly extended to 8-12 weeks, while chips are still in seriously short supply, such as driver ICs and power management ICs, which would extend to over 24 weeks, said the sources from some industrial IT product makers.

On the other hand, the lead time for microcontrollers and memory is currently still exceeding 10 weeks, the sources noted.

With lead time being extended, supply chain companies are also required to have good communication with the clients to get hold of their actual demand to prevent overbooking. Incompatible components could be another risk coming from the lead-time extension, the sources pointed out.

Since the issue cannot be easily resolved, most industrial IT product makers have already started making preparation for the new delivery model, the sources added.

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