Even a year into the COVID-19 pandemic, the consequences are still being felt. In recent months, in particular, a worldwide shortage of chips connecting devices to power has left various silicone parts in a limited quantity. The shortage of chips now appears to be affecting Qualcomm.
A new report today from Reuters claims that Qualcomm is struggling to keep up with demand for its processors across the board, including the company’s popular Snapdragon chips. Apparently Samsung specifically feels the pressure of this shortcoming.
One person at a Samsung supplier said that a shortage of Qualcomm chips is affecting the production of mid- and low-end Samsung models. The second person, at another vendor, said there was a shortage of Qualcomm’s new flagship chip, the Snapdragon 888, but did not say whether it would affect the production of Samsung’s high-end phones.
Ironically, the fall of Huawei seems to be exacerbating business, as demand for Qualcomm chips is higher than usual, as Qualcomm-dependent Android manufacturers want to capitalize on customers switching to Huawei devices that do not have access to the Play Store and Google services. This is the bigger demand that Qualcomm is leaving, with a shortage of some components used in the chipset design.
Initially, Qualcomm was mostly unaffected by the scarcity shortfall that first hit carmakers and companies like AMD and Nvidia for their next generation CPUs and GPUs.
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