The MCU Crunch: Lead Time Extensions and Challenges for Top Suppliers in 2025

Despite post-crisis recovery, microcontroller (MCU) shortages are back. In August 2025, average lead times rose by three days to 13–14 weeks, driven by surging demand in EVs, AI, and industrial automation. The tightest pressure is on mature nodes (40 nm and above) where roughly 70% of automotive MCUs are produced are hit hardest. Geopolitical tensions and lagging foundry expansion at TSMC and GlobalFoundries are compounding the strain.  

While this is not as severe as the 2021 crisis that halted production of 2.5 million vehicles, the risk of delays and rising costs is growing. KPMG forecasts 9.5% semiconductor market growth this year, but it will be unevenly distributed — booming in AI and advanced computing, while legacy MCU segments remain constrained. 
Below, we break down where the bottlenecks are, which manufacturers are most affected, how pricing is shifting, and practical steps companies can take to manage allocation risk. 

NXP Semiconductors: Strained Automotive and IoT Supply 

NXP Semiconductors faces lead times extending from 12 to 20 weeks, driven by demand for its SPC5 series (used in automotive powertrain and chassis), LPC1 series for industrial IoT, MIMX8 microprocessors crucial for infotainment and AI accelerators, is particularly constrained, with distributors reporting urgent customer needs. NXP’s automotive-grade chips, vital for ASIL-D safety systems, reflect the sector’s reliance on older nodes. Past disruptions, like the 2021 Texas winter storm impacting NXP’s Austin fab, highlight vulnerabilities.  

Infineon Technologies: AURIX Family Faces EV-Driven Demand 

Infineon Technologies is facing 20–30 week lead times for its AURIX family, particularly the SAK-TC and TC297T series, used in safety-critical systems such as ADAS and EV power management. These TriCore-based MCUs, certified to ASIL-D standards, remain in strong demand as EV adoption and data center growth accelerate. 

In its Q2 2025 earnings call, CEO Jochen Hanebeck flagged “imbalance risks” even while projecting $1 billion in AI-related revenue. To expand AURIX output, Infineon is ramping production at its new semiconductor manufacturing facility in Austria and leveraging GlobalFoundries partnerships, alongside launching its OPTIREG™ PMIC line to address EV bottlenecks. 

Still, with automotive driving nearly half of Infineon’s sales, exposure to geopolitical shocks — like the Renesas fire in 2021 — remains a pressing risk. 

Texas Instruments: Balancing Price Hikes and Market Expansion 

Facing surging demand from industrial and automotive markets, Texas Instruments (TI) is grappling with long lead times and broad price hikes as it works to balance supply and pricing strategies. Texas Instruments (TI) is grappling with long lead times and broad price hikes as industrial and automotive demand strains supply. Its TMS320 DSPs (for audio and control) and MSP430 low-power MCUs (for IoT and wearables) currently sit at 20–40 weeks. 

In June 2025, TI raised prices 10–30% on more than 60,000 parts, including MCUs, following tariff-driven shifts in demand, although the company has signaled some room for negotiation. 

Q2 2025 results showed resilient EV orders despite cuts elsewhere, with fab investments underway. TI’s analog integration offers leverage, but shortages in industrial controls challenge pricing power. After years of price cuts eroding margins, TI’s hikes aim to stabilize profitability, but buyers should negotiate to offset costs, according to distributor insights.  

STMicroelectronics: Longest Lead Times Hit STM32 Series 

STMicroelectronics is reporting some of the industry’s longest lead times, now averaging 28 weeks after extensions began in June. Demand is highest for the STM32F4 (high-performance Arm Cortex-M4) and and STM32G (general-purpose) series are heavily requested, fueled by consumer, automotive, and industrial markets.  Q2 2025 earnings results highlighted shortages for both MCUs and MEMS sensors, driving prices higher as backlogs clear. Automotive-focused SPC series parts remain especially scarce, with global logistics disruptions tied to conflicts and cold-chain requirements. While ST’s peripheral-rich chips add value, lead times for TSX series hit 55 weeks and CLF lines 22 weeks. Analysts warn that without expanded outsourcing, delays could extend into 2026, without expanded outsourcing, delays could extend into 2026, making proactive forecasting critical for buyers. 

Renesas Electronics: High Demand for R5 Series 

Renesas Electronics is seeing strong demand strong demand for its R5F2 and R5F5 series (used in engine controls and body electronics), with lead times currently running 20–45 weeks. The company ships about 3.5 billion MCUs annually, half to automotive customers, and is facing added pressure from EV and renewable energy markets. Q2 2025 results highlighted growth in AI-driven applications, led by the RA8P1 (1GHz, AI-accelerated). The 2021 Naka fab fire, which wiped out 20% of capacity and took over 100 days to recover, underscores lingering supply risks. Renesas is leaning further into its fab-light model, boosting outsourcing by 50% in 2025, while maintaining solid demand in China. Even so, rising global inventory levels are a warning sign, with shortages expected to persist into 2026. 

Microchip Technology: Industrial Demand Fuels ATMEGA and PIC18F 

Microchip Technology reports robust industrial demand for its ATMEGA AVR and PIC18F series, with lead times at 20–30 weeks. These 8- and 16-bit MCUs dominate legacy IoT and automation, driven by water management and chip fab growth. Prices for parts like ATMEGA88PA have stabilized, but automotive PIC lines remain tight. In Q2 2025, the company announced $300 million in new investments in India to expand capacity. Microchip’s Eclipse-based IDEs ease adoption, but channel depletions persist amid industrial upside. While stock is relatively ample for non-automotive uses, channel inventories remain depleted, and overall demand continues to outpace supply, signaling ongoing constraints. 

Top Requested MCU’s in the past month: 

The MCU shortage is again straining automotive, industrial, and AI supply chains, raising the risk of delays reminiscent of 2021’s disruptions. As S&P Global warns of “looming constraints,” buyers need clear strategies to secure parts and mitigate risk. Fusion Worldwide combines market insights with global sourcing expertise to support customers through supply disruption and volatility. Contact us to learn more.