Benzinga | Oct 26, 2021 06:34PM EDT

Chip Lead Times Continue To Slow, Hinting At Ease In Crisis: Bloomberg

* Delivery times for chips in October posted their smallest gain in about nine months, signaling towards possible ease in crisis plaguing multiple industries, Bloomberg reports.

* The lead times, which implies the gap between a semiconductor order and delivery time, increased by one day to about 21.9 weeks in October versus September, as per Susquehanna Financial Group.

* Power management and optoelectronic chips were easily accessible in October, while the wait for microcontrollers, particularly those used by automakers, increased by up to six weeks.

* Broadcom Inc's (NASDAQ:AVGO) lead times were "well off highs" as its situation improved.

* However, Texas Instruments Inc (NASDAQ:TXN), Infineon Technologies AG (OTC:IFNNY), and Microchip Technology Inc (NASDAQ:MCHP) told their customers to wait longer.

* "While some product categories may be loosening, checks with distributors still suggest supply pressure will remain into 2022 for power management" and other products, which include discrete chips, Wi-Fi modules, microcontrollers, and auto networking products.

* In the past, extending lead times followed painful periods of oversupply. Concerns remain over the cancellation of orders by customers who were double ordering at present.

* The chip crisis proved to be a boon for multiple chipmakers.

* Price Action: AVGO shares closed higher by 2.26% at $533.87 on Tuesday.