Supply crisis is easing, chip delivery time reduced to 26.3 weeks in September.

Susquehanna analyst Christopher Rolland said in a research note that wait times for all key product categories have been reduced, with power management and analog chips showing the largest decreases.

Global chip shortages have plagued industries over the past year, with automakers and other manufacturers struggling to get enough semiconductors. Supply constraints still exist, but now many chip makers are worried about the opposite problem: excessive chip inventory.

Slowing sales in certain markets (such as personal computers) have led to lower-than-expected demand from Intel Corp. and AMD. Earlier this month, AMD's third-quarter sales were more than $1 billion lower than expected, and Intel is preparing to cut jobs to counter the decline.

Tensions between the U.S. and China have also cast a shadow over the future of the chip industry. The Biden administration announced new export restrictions this month that limit what U.S. companies can sell to the Asian nation.

The Philadelphia Stock Exchange Semiconductor Index has fallen 44 percent this year.