MacRumors

macrumors bot
Original poster
Apr 12, 2001
53,560
15,267


Qualcomm is having a hard time keeping up with demand for the processor chips that Android manufacturers rely on, reports Reuters. Chip shortages have been impacting multiple industries, and have now hit the electronics business.

samsungs20galaxylineup.jpg

There's no indication that Qualcomm's supply troubles will impact Apple, but smartphone manufacturers like Samsung could be in trouble. Apple develops its own A-series chips that are manufactured by TSMC, but it does use Qualcomm's modem chips.

Samsung and other Android manufacturers rely on Qualcomm's Snapdragon chips to power their smartphones, and demand has soared over the course of the past few months. Qualcomm is facing shortages of some of the subcomponents used in its chips, and the component issues could impact production of mid and low-end Samsung models.

A source told Reuters that Qualcomm's flagship Snapdragon 888 chip is impacted, but it's not clear if this is impacting the manufacturing of Samsung's high-end smartphones. Samsung next week will hold an Unpacked event to unveil its latest mid-range Galaxy A series device, which is expected to compete with the iPhone SE.

An executive at a contract manufacturer for several major smartphone brands said that it was facing a shortage of a range of components from Qualcomm and would cut handset shipments, but it's not likely that this is referring to Apple.

For the most part, the shortages are impacting Qualcomm's older processor technology because Qualcomm is directing key components toward its newer processor options that are more profitable. On Wednesday, Qualcomm CEO Cristiano Amon told investors that Qualcomm's demand is "basically higher than supply."

With a lack of supply, chip component prices are going up. A microcontroller unit chip from STMicroelectronics, for example, originally sold for $2 but is now priced at $14.

It's not clear if these chip issues will eventually have some kind of impact on Apple's business, but so far the Cupertino company appears to be able to manufacture devices as normal with no supply shortages.

Article Link: Qualcomm Struggling to Keep Up With Processor Demand and Shortages Could Impact Samsung
 
Last edited:

LFC2020

macrumors 603
Apr 4, 2020
5,733
8,481
Samsung and other Android manufacturers rely on Qualcomm's Snapdragon chips to power their smartphones, and demand has soared over the course of the past few months. Qualcomm is facing shortages of some of the subcomponents used in its chips, and the component issues could impact production of mid and low-end Samsung models.

Great news, less mediocre, garbage phones being sold. 😃
 

sw1tcher

macrumors 68020
Jan 6, 2004
2,307
4,330
Samsung and other Android manufacturers rely on Qualcomm's Snapdragon chips to power their smartphones, and demand has soared over the course of the past few months. Qualcomm is facing shortages of some of the subcomponents used in its chips, and the component issues could impact production of mid and low-end Samsung models.
That's not entirely true.

Samsung and other Android-based smartphones also use Exynos (e.g. Galaxy S20, S21) and MediaTek chips.
 

billk711

Suspended
Oct 11, 2011
153
62


Qualcomm is having a hard time keeping up with demand for the processor chips that Android manufacturers rely on, reports Reuters. Chip shortages have been impacting multiple industries, and have now hit the electronics business.

samsungs20galaxylineup.jpg

There's no indication that Qualcomm's supply troubles will impact Apple, but smartphone manufacturers like Samsung could be in trouble. Apple develops its own A-series chips that are manufactured by TSMC, but it does use Qualcomm's modem chips.

Samsung and other Android manufacturers rely on Qualcomm's Snapdragon chips to power their smartphones, and demand has soared over the course of the past few months. Qualcomm is facing shortages of some of the subcomponents used in its chips, and the component issues could impact production of mid and low-end Samsung models.

A source told Reuters that Qualcomm's flagship Snapdragon 888 chip is impacted, but it's not clear if this is impacting the manufacturing of Samsung's high-end smartphones. Samsung next week will hold an Unpacked event to unveil its latest mid-range Galaxy A series device, which is expected to compete with the iPhone SE.

An executive at a contract manufacturer for several major smartphone brands said that it was facing a shortage of a range of components from Qualcomm and would cut handset shipments, but it's not likely that this is referring to Apple.

For the most part, the shortages are impacting Qualcomm's older processor technology because Qualcomm is directing key components toward its newer processor options that are more profitable. On Wednesday, Qualcomm CEO Cristiano Amon told investors that Qualcomm's demand is "basically higher than supply."

With a lack of supply, chip component prices are going up. A microcontroller unit chip from STMmicroelectronics, for example, originally sold for $2 but is now priced at $14.

It's not clear if these chip issues will eventually have some kind of impact on Apple's business, but so far the Cupertino company appears to be able to manufacture devices as normal with no supply shortages.

Article Link: Qualcomm Struggling to Keep Up With Processor Demand and Shortages Could Impact Samsung
Time for the forum analyst to explain everything for us, sit back and laugh
Best is when they say apple should of done this or that, like apple doesn't know what they are doing,
 
  • Like
Reactions: PC_tech and djcerla

RickDEGH

macrumors regular
Sep 15, 2018
202
259
Germany
Samsung and other Android manufacturers rely on Qualcomm's Snapdragon chips to power their smartphones, and demand has soared over the course of the past few months. Qualcomm is facing shortages of some of the subcomponents used in its chips, and the component issues could impact production of mid and low-end Samsung models.

Great news, less mediocre, garbage phones being sold. 😃
Android mid-tier phone production tanks = more sales for Apple since all their chips are high end.
 

mtneer

macrumors 68040
Sep 15, 2012
3,108
2,597
Why would it bother Samsung - don’t they have Exynos and their own fabs to run up any volume they want? If anything this would be a problem for other OEM’s dependent on Qualcomm and do not have their own fab : LG, OnePlus, Xiaomi etc.
 

LFC2020

macrumors 603
Apr 4, 2020
5,733
8,481
Why would it bother Samsung - don’t they have Exynos and their own fabs to run up any volume they want? If anything this would be a problem for other OEM’s dependent on Qualcomm and do not have their own fab : LG, OnePlus, Xiaomi etc.
Exynos is garbage, Qualcomm is a little less garbage. 💩💩
 
  • Haha
Reactions: snipr125

jz0309

Contributor
Sep 25, 2018
3,122
9,867
Temecula, CA
Apple uses TSMC 5nm and still some 7nm ...
Qualcomm des TSMC 5nm and 7nm
Qualcomm uses Samsung 7nm ...

The issue boils down to capacity for 5 and 7 nm at those 2 foundries, there is no other alternative at this point and won't for the foreseeable future.

I am sure that Apple has secured its demand, even read articles that they did through 2024.
Qualcomm has done similar, I'm sure, but, there is also AMD, NVIDIA and a few others playing in the 5/7nm space ...

Demand is higher than supply, this will be the norm for semiconductors for quite some time, we will all pay literally the price for that.
 
  • Sad
Reactions: Shirasaki

mi7chy

macrumors G3
Oct 24, 2014
8,236
8,941
Explains why it took a month to receive the Qualcomm S21 Ultra phantom blue. Was worth the wait though until we see what Apple comes up with for iPhone 13 Pro Max.
 
  • Like
Reactions: TheSapient
Register on MacRumors! This sidebar will go away, and you'll see fewer ads.