Supply chain: Broadcom's lead time will be extended to 50 weeks
According to supply chain, Broadcom recently issued a notice to customers, stating that the lead time of its network communication chips will be extended to 50 weeks, and some chips may take more than one year.
Network communication applications include 5G mobile networks, WiFi 6, broadband, network switches and other applications. The demand in these markets has been stable before the outbreak of the Covid-19 epidemic. However, since the outbreak, the global 5G construction has accelerated, and the demand for online education and people working from home has greatly increased the demand for network communication chips. The network communication equipment supplier also revealed that the number of replacements that was expected to be reached in the next 3 to 5 years has recently burst out in an instant.
Supply chain sources pointed out that the key components of network communication equipment are in short supply. Among them, Broadcom's lead time is about 50 weeks, and MediaTek and Realtek also need more than 20 to 30 weeks. The chips currently delivered are all orders placed to the fab three or four months ago. Even so, it is still unable to meet the needs of customers. The current supplier's supply strategy is to divide the order into multiple deliveries, and the quantity for each delivery is very small.
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