Packaging Bottlenecks Stretch Analog and Power Component Lead Times

Vyrian, an independent distributor of hard-to-find, obsolete, and allocation-constrained electronic components, has highlighted a significant shift in the semiconductor industry. Packaging bottlenecks are now stretching the lead times for analog and power components, which are crucial for industrial controls, automotive systems, medical equipment, and infrastructure.

According to Unimicron Chairman S.C. Chien, on October 20, more than 80 percent of the company's key equipment lead times have lengthened. Specifically, some tools are now at 30 months, a stark increase from the previous timeline. Chien warned that critical materials, including ABF (autobonding film), could face a 20 percent shortfall in 2027. This warning underscores the growing strain on the supply chain, particularly for components that support long product lifecycles where redesigns are not feasible.

TrendForce data from September revealed that ABF substrate lead times have extended to 48 to 56 weeks, compared to about 12 weeks in a balanced market. This significant increase in lead times indicates a severe shortage in the supply of these critical materials.

In its October 21 earnings call, Texas Instruments reported that lead times have moved higher, and the company is receiving less capacity from its OSAT (outsourced semiconductor assembly and test) partners than it desires. Similarly, on October 29, STMicroelectronics stated that demand remains well above supply, highlighting the ongoing imbalance in the market.

Vyrian Inc., which serves OEMs, EMS providers, and government customers, has noted that the market has spent two years focusing on memory and AI accelerators. However, the current shortage is being driven by the prioritization of packaging and substrate capacity for AI applications. Analog and power parts that were previously available within 12 to 16 weeks are now experiencing extended lead times, impacting customer builds.

This shift in priorities among semiconductor manufacturers is affecting a wide range of industries that rely on these components. The extended lead times and potential shortages could have significant implications for manufacturers and end-users, particularly those in sectors with long product lifecycles where timely supply is critical.