Navigating the Current Situation
The chip shortage is not going away any time soon, and will certainly be an issue through the next 12 to 18 months. Right now, the backlog is significant enough that manufacturers need to anticipate approximately four to five times the lead time they were accustomed to up to this point.
In addition, electronic manufacturers also need to understand their role in navigating the shortage.
When they place orders larger than necessary because they are concerned suppliers won’t fill the entire order, they make the problem worse.
By only ordering what they need for their current projects, the electronic parts and components factories will know what they need to produce to meet the actual current needs.