According to network equipment supply chain sources, the lead time of network chips has been shortened from more than 50 weeks to 30 weeks, showing that the shortage of network chips is easing.
In the past year, the IC shortage faced by network communication products gradually eased in the second half of 2022. This was mainly due to weak demand for consumer electronics, freeing up supply for network communication chips.
Gordon Yang, CEO of Unizyx, noted that the company faces supply chain challenges in the first half of 2022. With the delivery time shortened to 30 weeks and transportation costs lower, the company's operations will improve significantly in the second half of the year.
James Wang, chairman of Sercomm, said that material supplies remained tight, but their order fulfillment rate had improved from less than 80 percent to nearly 90 percent.
Arcadyan noted that lead times for major chips are still 50 weeks or more, but supply has increased significantly. The order fulfillment rate improved from 75% in the second half of 2021 to 85% in the second quarter of 2022, and is expected to reach nearly 90% in the third quarter.
Both wireless broadband and network equipment makers believe the industry will continue to grow, driven by demand for broadband networks.
