Qualcomm's Chip Shortage Hits Samsung

Qualcomm's Chip Shortage Hits Samsung

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Samsung is among numerous device manufacturers affected by a shortage of Qualcomm chips. The crisis is attributed to a surge in demand related to US sanctions on Huawei.

Sources say Samsung was facing a shortfall of application processors, which impacted production of its low- and mid-tier handsets. Short supply of premium chips was also noted.

Several other major smartphone brands were tipped to be in similar straits, with a source from a top contract manufacturer telling Reuters it would slash device shipments in 2021. A Qualcomm representative pointed  to recent comments from company executives acknowledging supply constraints.

During its annual shareholder meeting on 10 March, president Cristiano Amon noted an industry-wide semiconductor shortage, adding demand for the company’s products was basically higher than supply. He said supply was expected to meet demand towards the later part of 2021, but added Qualcomm expected long-term demand for its silicon to remain high due to the impact of US sanctions on Huawei.

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