Tibco News, Aug. 24, DIGITIMES reported that sources at network equipment makers said that some network IC suppliers are reducing their lead times from more than 50 weeks to 30 weeks, indicating that the chip shortage is easing.

Image source: DIGITIMES

The IC shortage faced by network communication products over the past year is gradually easing in the second half of 2022, the report said. This is largely due to weak demand for consumer electronics, freeing up supply for network communications customers.

Unizyx CEO Gordon Yang noted that the company faces supply chain challenges in the first half of 2022. The company's operations will improve significantly in the second half of the year as lead times are reduced to 30 weeks and transportation costs are lower, while Sercomm Chairman James Wang said material supply remains tight, but their order fulfillment rate has improved from less than 80 percent to nearly 90 percent.

In addition, Arcadyan noted that lead times for major chips remain at 50 weeks or more, but supply has increased significantly. The order fulfillment rate 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.

source：aijiwei