Samsung is also affected by the shortage of Qualcomm chips. Like Xiaomi or Realme, the Seoul-backed giant is suffering from unusually long supply delays from its chipset supplier. The production of several mid- and entry-level smartphones would be affected.
A severe shortage of semiconductors is affecting the entire consumer electronics industry. Several Chinese manufacturers, including Xiaomi and Realme, are already experiencing significant supply problems for Qualcomm components. Without the chips of the American smelter, the production lines of the manufacturers are idling. “It’s not a shortage, it’s an extreme shortage,” Lu Weibing, Xiaomi’s vice president, said recently on Sina Weibo, the Chinese social network.
Unable to meet the growing demand, Qualcomm says the flea shortage will continue until the end of 2021. In a telephone meeting with investors, Cristiano Amon, Qualcomm’s new chief executive,summed up the situation as “we always see demand well above supply.”
Samsung smartphone production suffers from chip shortage
Citing sources close to the industry, Reuters said Qualcomm is struggling to meet demand for phone chips. The American smelter would itself be affected by a shortage of components essential to the operation of its chipsets,including the Snapdragon 888. Deprived of some semiconductors, Qualcomm would not be able to produce enough processors to meet the gargantuan demand.
According to reuters reports, Samsung is also hurt by the shortage of Qualcomm chips. The smelter’s extremely long supply times would currently cripple the production of Samsung mid- and entry-level smartphones. For now, it seems that the manufacture of high-end phones (S21…) is not yet impacted.
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According to Reuters, many manufacturers of smartphones and high-tech products for the general public are stocking up on chips, fearing they will run out if the shortage worsens. These “panic” purchases contribute to widening the gap between supply and demand. “Everyone orders like crazy, when in fact they can’t even use all the chips ordered” regrets Simon Wan, co-founder of the Roborock vacuum cleaner brand. In these circumstances, the situation is not about to improve.
Source: Reuters
