Chip Supply to Remain Tight in Short Term

With a three-month lag between the initial placement of orders and final delivery of product, the semiconductor supply chain is always a little choppy. And this year is no exception. Supplies are likely to fall short of demand through the third quarter when holiday orders are placed, according to analysts at Broadpoint AmTech.

So what’s the likely impact? Companies facing supply shortages will generally prioritize higher-end devices if they are forced to choose, which could leave some store shelves a little bare come holiday time. But by the end of the year and into the first quarter of 2011, the supply chain curve could bend again, this time outpacing demand. Hardware Central takes a look.

As the second calendar quarter winds down, semiconductor vendors are heading into a period when demand should heat up, but they are already wrestling with shortages as demand is outstripping supply.

Broadpoint AmTech analyst Doug Freedman noted in a research report that the inventory throughout the electronics supply chain, covering more than 75 companies total, continues to be constrained, though there is a chance that supply will begin to swell around the Q4 2010/Q1 2011 timeframe.

Read the full story at Hardware Central:

Chips Remain in Short Supply, But Slowdown Seen Later

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