Korean media: Delivery times for key semiconductor equipment components have more than doubled

The artificial intelligence-driven surge in semiconductor demand is transmitting upstream through the industry chain and creating severe bottlenecks in key component sectors. According to the Korean industry, lead times for critical components required for semiconductor manufacturing equipment have generally more than doubled, with wait times for certain key components made in Japan reaching as long as 40 months. Supply chain delays not only threaten the normal production pace of equipment manufacturers, but could also impact the capital expenditure plans of major global chipmakers such as Samsung Electronics and SK Hynix.

According to Korea Electronic Times on September 16, citing industry insiders, many domestic semiconductor equipment companies in Korea are reporting worsening difficulties in sourcing components. An executive at deposition equipment manufacturer Company A stated that the lead time for relevant components has increased from four months previously to ten months; laser process equipment maker Company B is facing an even more extreme situation, with wait times for essential Japanese-made components now extended to 40 months—even if they are willing to pay a premium, delivery cannot be expedited.

Industry insiders warn that the combination of component shortages and equipment delivery delays will significantly increase the likelihood of delays in global semiconductor production infrastructure investment, with ongoing projects such as Samsung Electronics' Pyeongtaek site and SK Hynix's Yongin site facing potential impacts.

Surging demand overwhelms the supply chain

The immediate trigger for this round of component shortages is the explosive demand brought on by the AI boom. As shipments of AI semiconductors and memory chips rise sharply, demand for semiconductor manufacturing equipment has expanded rapidly, but the suppliers of core components such as modules used in equipment production have not preemptively expanded capacity, resulting in a supply-demand gap.

An industry insider bluntly stated: "Even if component manufacturers start expanding production now, they still can't meet current demand." He also pointed out that since there is uncertainty over when the AI-driven semiconductor super-cycle will end, component manufacturers generally take a wait-and-see approach to large-scale investment in capacity expansion. This is especially true for Japan's component industry – as a key pillar of semiconductor equipment manufacturing, Japanese suppliers have always been cautious about investing in capacity, a characteristic that has become particularly prominent amidst current supply tensions.

Although packaging equipment manufacturer Company C has already established a domestic component supply chain, it is not immune. An executive at the company reported that domestic procurement is better than overseas, but lead times are still about 50% longer than normal – packaging equipment components that would normally arrive in four months now take more than six months.

Equipment delivery delays transmitted downstream

The pressure from component shortages has already propagated downstream in the industry chain to the equipment delivery segment. It is reported that semiconductor manufacturers are now waiting twice as long as normal to receive equipment, with global leading chip companies in the midst of large-scale capital expenditure cycles being hit particularly hard.

A semiconductor equipment industry insider predicts that "the combined effect of equipment delivery delays and component supply shortages has significantly increased the likelihood of delays in global semiconductor production infrastructure investment", specifically naming the Samsung Electronics Pyeongtaek project and the SK Hynix Yongin project as affected.

This means that South Korea's domestic expansion plans, originally regarded as a main driver for AI infrastructure investment, are now facing substantial resistance from the supply chain.