Samsung was among a number of device manufacturers affected by a shortage of Qualcomm chips attributed to a surge in demand related to US sanctions on Chinese vendor Huawei, Reuters reported.
Sources told the news outlet 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 Mobile World Live 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 [1].
[1] https://www.mobileworldlive.com/featured-content/home-banner/huawei-ceo-calls-for-easing-of-us-china-trade-tensions
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