The chip shortage is gradually easing but there are still structural shortages

After two years of a global chip shortage crisis, the overall supply situation is gradually improving, but structural shortages in areas like automotive electronics and industrial control still exist. Industry analysis shows that the tight supply of mature process chips is expected to continue until 2025.

Data shows that in the third quarter of 2024, the average global chip delivery lead time was 20 weeks, a notable reduction from 30 weeks in the same period last year. However, in product categories such as power semiconductors and MCUs, supply remains tight and prices continue to stay at elevated levels.

Supply chain experts point out that uncertainties such as geopolitical factors, recurring pandemic outbreaks, and natural disasters continue to affect the stability of the chip supply chain. Companies need to build more flexible and diversified supply chain systems.

It is expected that by the second half of 2025, as new production capacity comes online progressively, the chip supply shortage will be fundamentally alleviated.