In 2021, Samsung may significantly reduce the production of smartphones. Reported by Reuters.
Qualcomm, one of the leaders in the semiconductor market, cannot supply Samsung with the required number of processors. Two sources in the American company told the agency on condition of anonymity. The demand for Qualcomm chips has grown sharply in recent months, the company cannot provide partners with the required number of processors due to the lack of components for their production.
In particular, the insider said that there is a shortage of the flagship processor – Snapdragon 888. Another source in the company predicted that due to the shortage of chips in general, Samsung will have problems with the production of smartphones in low and medium price segments. A Samsung spokesperson contacted by reporters declined to comment. Qualcomm said the company intends to address supply issues in the future.
“Demand still largely outstrips supply,” Qualcomm CEO Cristiano Amon said at the AGM last Wednesday. According to analysts polled by Reuters, the shortage of microprocessors increases the cost of even the cheapest chips. For example, a microcontroller chip from STMicroelectronics, originally priced at $ 2, now sells for $ 14 a piece.
Also, the Korean corporation is experiencing problems due to force majeure circumstances. For example, Samsung's radio frequency transceiver plant in Texas was forced to shut down in February due to power shortages caused by winter storms.
At the same time, experts noted that medium and small businesses, and not transnational corporations like Samsung, suffer most from the deficit in the market. For example, Qualcomm is primarily interested in securing its largest partners. The company's priority product is the flagship Snapdragon 888 processor, which is used in the most expensive Android smartphones.
In early March, the head of Xiaomi Lu Weibing announced a strong shortage of microchips. According to him, the lack of processors on the market slows down the production of gadgets. At the end of February, Bloomberg analysts predicted a global shortage of products based on certain processors.
