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Semiconductor demand recovery is spreading from AI to broader industrial end markets, and supply chain tightness is transmitting from digital chips to analog chips.
BlockBeats News, July 4 – Analog Devices, a leader in analog chips, issued a formal letter to customers stating that due to a significant overall increase in semiconductor demand and ongoing supply constraints, the delivery cycle for some product portfolios has extended to up to six months. ADI recommends that customers place orders through channel partners at least six months in advance and extend their order backlog coverage accordingly.
Critini Research analyst Jukan stated that this is an important signal of recovery in semiconductor demand. Previously, market focus was centered on shortages of AI training chips and HBM memory; the extended delivery cycles for analog chips indicate that the recovery in demand is spreading from AI to a broader range of end markets such as industrial and automotive, and the supply chain tightness is transitioning from digital chips to analog chips.