has nothing to do with the fact that there is a capacity problem ...
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Qualcomm Struggling to Keep Up With Processor Demand and Shortages Could Impact Samsung
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actually no, it isn't ... 5nm and for that matter 7nm as well as future 3nm are very capacity constrained and there are more players besides Apple, Qualcomm wanting to play, eg AMD, NVIDIA and others, plus additional demand from AI, autonomous driving and such will further tighten the capacity ... TSMC is planning a ne fab in the US, 5nm, but that won't be online for another 3 years or so ...
Not everyone can afford the latest and greatest phone.
That’s where a iPhone SE comes into play 😁🤪
“just ramp up supply” is not something you can do if you’re already running at capacity and/or if other components needed for chip manufacturing are in short supply. Besides, a more complex process mode may require anywhere from 4-6 mo that to fabricate from start to finish. These things are not made overnight.
increasing capacity takes time too, assuming you have zero concerns about spending $1Bn on additional sub 10nm capacity for what could easily be a bubble... ordering the fab equipment, getting it built, installing & commissioning it and then integrating it in to your existing flow & process to the point where yields are good enough - that all takes months too. And fab equipment, especially bleeding edge gear, does not sit around at the local fab equipment store waiting for somebody to drop by on the off chance and buy it...
lastly, the characterisation this is a chip shortage is slightly off - it’s not a supply shortage as much as it’s a demand excess. What’s the difference? Suppliers haven’t cut back on capacity so much as customers cut back on demand & orders and then expected the supply to be switched back in just as quickly... especially when so many suppliers urged them to ramp up their orders in good time when the Asia Pacific economies bounced back so quickly after Covid lock down etc.
It’s hard to see things improve significantly anytime soon for the consumers of these chips - not just high end bleeding edge process nodes but trailing edge stuff too - a lot of demand moved from spending money on vacations & travel etc that was all but stopped by Covid to other purchases that perhaps are intended to make people feel good during Covid... which is what has me wandering if this bubble goes away as quickly as it came. And that it is a bubble.
just my 2 cents worth.
increasing capacity takes time too, assuming you have zero concerns about spending $1Bn on additional sub 10nm capacity for what could easily be a bubble... ordering the fab equipment, getting it built, installing & commissioning it and then integrating it in to your existing flow & process to the point where yields are good enough - that all takes months too. And fab equipment, especially bleeding edge gear, does not sit around at the local fab equipment store waiting for somebody to drop by on the off chance and buy it...
lastly, the characterisation this is a chip shortage is slightly off - it’s not a supply shortage as much as it’s a demand excess. What’s the difference? Suppliers haven’t cut back on capacity so much as customers cut back on demand & orders and then expected the supply to be switched back in just as quickly... especially when so many suppliers urged them to ramp up their orders in good time when the Asia Pacific economies bounced back so quickly after Covid lock down etc.
It’s hard to see things improve significantly anytime soon for the consumers of these chips - not just high end bleeding edge process nodes but trailing edge stuff too - a lot of demand moved from spending money on vacations & travel etc that was all but stopped by Covid to other purchases that perhaps are intended to make people feel good during Covid... which is what has me wandering if this bubble goes away as quickly as it came. And that it is a bubble.
just my 2 cents worth.
this shortage is a artificial, remember these chip orders needs to be placed well ahead of the time for foundaries start the batch. many many months if not years. back when covid hit in 2020, many companies scaled down their order from foundaries because they foresaw a low demand from the consumer due to the pandemic, and because of that foundaries like TSMC scaled back their production, and now the chicken has come home to roast.
nope, Qualcomm doesn't make its own fabrication. in fact, article is talking about processors for samsung, where did you even get the logic that apple is being dragged into this.
You mean the guy who couldn't get enough screws for the Mac Pro? 🤣
Now We Know Why Apple Had Trouble Mass Producing the Mac Pro in the U.S.
Apple still benefits greatly from producing its products in China.
A Tiny Screw Shows Why iPhones Won’t Be ‘Assembled in U.S.A.’ (Published 2019)
Apple decided several years ago to produce a high-end Mac in Texas. The problems that surfaced illustrate the challenges of domestic manufacturing.
I know nothing about making these things, is the timeline of the new fab just the logistics mentioned in another post? Like they can’t speed up if they wanted too? Just curious.
All of the billions of devices since 2007, iphones, ipads, computers and accessories, ipods, AW and other wearables etc. And you have the temerity of an "internet ding" on some screws? That's rich.You mean the guy who couldn't get enough screws for the Mac Pro? 🤣
Now We Know Why Apple Had Trouble Mass Producing the Mac Pro in the U.S.
Apple still benefits greatly from producing its products in China.fortune.com
A Tiny Screw Shows Why iPhones Won’t Be ‘Assembled in U.S.A.’ (Published 2019)
Apple decided several years ago to produce a high-end Mac in Texas. The problems that surfaced illustrate the challenges of domestic manufacturing.www.nytimes.com
not sure what post you're referencing ... what TSMC is planning is a brand new site, so building, then it needs to be "cleaned" (fabs have far fewer particles than a hospital operating room), then spend Billions on equipment, installing it, fine-tuning it etc, that is estimated to take 2-3 years, closer to 3 ... can't do that much faster. They estimate about $10B ... I have a link on how chips are made, but not aware of anything for building a fab.
It depends on which Snapdragon SoC they are talking about. The report indicated it was specifically 888, which is Fabbed on Samsung Foundry. i.e The Samsung Foundry Fabbed Qualcomm Snapdragon 888 shortage is having an impact on Samsung Mobile.
Samsung is still trying to perfect their Foundry Business. And it doesn't help when their Fabs in Texas are closed for 3 weeks. ( And are still closed right now )
And that is question I had, will Qualcomm X60 Modem be Fabbed on Samsung as well. Which is going to impact iPhone 12s / 13.
rumors say X60 is going to Samsung on 5nm, see below, I also read it somewhere else a couple weeks ago. Samsung's 5nm is not yet at full capacity so I do not believe there will be an impact to the upcoming iPhone ...
5G modem chip for the Apple iPhone 13 will be made by the company's biggest rival
The Apple iPhone 13 will reportedly feature the 5nm Snapdragon X60 5G modem chip that will be manufactured by Apple's top rival Samsung using the latter's 5nm process node.
www.phonearena.com
I agree with you. How odd that only a few weeks ago there was an article on here claiming that Samsung buy far less chips than Apple....if demand is “soaring” for Qualcomm then it is likely soaring for Samsung given they are likely one of their biggest customers. I am pretty sure Samsung can ramp up their own fabs. If mobile chips are in such demand, then mobile Ram will also in big demand, what would Apple do about that if demand outstrips supply?
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That's what I did in 2019 when I upgraded from 32GB iPhone 5s to a used 256GB iPhone 7+ from eBay for AUD$450. Apple knows the used market is where some customers are going for phones now, that's why the SE ads make a big deal about the "new phone" unboxing experience.
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Apples agreements with suppliers probably include additional payments for meeting target deliverables and significant punitive damages for missing target deliverables.
As for Qualcomm they could be stifling manufacturing capacity to drive up prices and create fake demand. (The same thing apple is accused of at times)
LOL, he even inhales the "new electronics" fragrance Apple puts in the box.
All of the billions of chips produced and shipped since the 1980s and you have the temerity to think Qualcomm needs to be schooled on supply chain management? Do you even know why there's a chip shortage and what lead to it?
Sorry, but I have a hard time believing even Tim Cook would have been prepared for it. The Covid-19 pandemic threw a wrench in everything.
It's not as if Tim Cook has had a perfect record either. It's more than just screws.
Why can't Apple meet demand for the iPhone 6?
Two months after its launch, consumers are still waiting to get their iPhone 6 but it doesn't seem to have hurt Apple at all.
Meeting customer demand for iPhone 7 is Apple’s big problem
As sales of other products drop the ability to supply enough iPhones is critical
Apple working 'really, really hard' to fix supply problems on product line
On today's Q4 earnings call, Cook said that the company is experiencing supply constraints that affect most of its major products.
www.imore.com
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There is no such thing as a perfect record in life. And, I agree, unforeseen circumstances do throw a monkey wrench into life's plans. But in spite of it all, Tim Cook has a very good record and that was the point.All of the billions of chips produced and shipped since the 1980s and you have the temerity to think Qualcomm needs to be schooled on supply chain management? Do you even know why there's a chip shortage and what lead to it?
Sorry, but I have a hard time believing even Tim Cook would have been prepared for it. The Covid-19 pandemic threw a wrench in everything.
It's not as if Tim Cook has had a perfect record either. It's more than just screws.
Why can't Apple meet demand for the iPhone 6?
Two months after its launch, consumers are still waiting to get their iPhone 6 but it doesn't seem to have hurt Apple at all.www.cnbc.com
Meeting customer demand for iPhone 7 is Apple’s big problem
As sales of other products drop the ability to supply enough iPhones is criticalwww.irishtimes.com
Apple working 'really, really hard' to fix supply problems on product line
On today's Q4 earnings call, Cook said that the company is experiencing supply constraints that affect most of its major products.
It certainly is within your purview to ding Tim Cook as it is within mine to point out that Apple has done remarkably well due to the pandemic and dealing with shortages and closures.
What a unintelligent statement"Chip shortages have been impacting multiple industries, and have now hit the electronics business."
Easy, lets stop selling chips to all the NON electronics industries...
Samsung
A lot of reasons along with COVID, transportation, WFH, excessively high demand for TSMC fabbed AMD CPUs/GPUs and Samsung fabbed Nvidia GPUs, crypto mining, etc. Due to the shortage and high demand, value of desirable GPUs have doubled so a $1500 3090 FE now has a street value of ~$3000 and fly off the shelves hundreds at a time in seconds.
A lot of reasons along with COVID, transportation, WFH, excessively high demand for TSMC fabbed AMD CPUs/GPUs and Samsung fabbed Nvidia GPUs, crypto mining, etc. Due to the shortage and high demand, value of desirable GPUs have doubled so a $1500 3090 FE now has a street value of ~$3000 and fly off the shelves hundreds at a time in seconds.