According to DIGITIMES, sources at networking equipment manufacturers say that delivery times from some networking IC suppliers have been reduced from more than 50 weeks to 30 weeks, suggesting that the chip shortage is easing.
The shortage of ICs facing network communications products over the past year is easing in the second half of 2022, the report said. This is largely due to weak demand for consumer electronics, which has freed up supply for network communications customers.
Unizyx CEO Gordon Yang noted that the company faced supply chain challenges in the first half of 2022. James Wang, chairman of Sercomm, said that material supply was still tight, but their order fulfilment rate had improved from less than 80 per cent to close to 90 per cent.
In addition, Arcadyan noted that lead times for major chips are still at 50 weeks or more, but supply has increased significantly. The order fulfilment rate has improved from 75% in the second half of 2021 to 85% in the second quarter of 2022, and is expected to reach nearly 90% in the third quarter.
Wireless broadband and networking equipment manufacturers such as Unizyx, Arcadyan and Sercomm all believe the industry will continue to grow, driven by demand for broadband networks, according to the report. Demand for broadband networks is not expected to change, even if inflation curbs consumer spending levels.