Qualcomm Struggling to Keep Up With Processor Demand and Shortages Could Impact Samsung

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
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.

Top Rated Comments

I7guy Avatar
11 months ago
Those guys need Tim Cook, supply chain guru, to edumacate them.
Score: 8 Votes (Like | Disagree)
Suckfest 9001 Avatar
11 months ago

Oof. Samsung is having a hard time there.
Nah they’ll probably just make up for it with Exynos chips
Score: 7 Votes (Like | Disagree)
LFC2020 Avatar
11 months ago

It could be that part of apple’s agreement with qualcomm was to have priority supply
Apple doesn’t use rubbish snapdragon processors for their phones, they only use Qualcomm modems.
Score: 5 Votes (Like | Disagree)
shapesinaframe Avatar
11 months ago

Great news, less mediocre, garbage phones being sold. ?
Not everyone can afford the latest and greatest phone.
Score: 5 Votes (Like | Disagree)
LFC2020 Avatar
11 months ago

Yeah buy if those chips were in a Apple they would be the best, right?
Apple doesn’t use mediocre chips for their processors, only the A series beast will do. Been leading the industry for a very loooooonnnnnnngggggg time ?

They’ll be going 5 years backwards if they used that garbage. ????
Score: 5 Votes (Like | Disagree)
dannyyankou Avatar
11 months ago

It could be that part of apple’s agreement with qualcomm was to have priority supply
But it seems like the main shortages they’re having is with processors, which Apple doesn’t use
Score: 4 Votes (Like | Disagree)

Related Stories

iphone12truedepth

iPhone Production May Face Disruptions Due to OLED Display Chip Shortage

Friday March 19, 2021 8:57 am PDT by
Due to the impacts on Samsung's production of OLED displays as a result of a global chip shortage, iPhone production could be facing disruptions, according to Nikkei Asia. Last month, Samsung was forced to shut down its chip fabrication plant in Texas due to large winter storms. The plant is responsible for 5% of the global supply of chips for smartphones and personal computers, and its...
tsmc semiconductor chip inspection 678x452

Apple Supplier TSMC Says Global Chip Shortage Likely to Last into 2022

Thursday April 15, 2021 2:01 am PDT by
Apple supplier TSMC today said it is doing all it can to increase productivity and alleviate the worldwide chip shortage, but that tight supplies will likely continue into next year (via Reuters). The comments followed a reported 19.4% rise in the Taiwanese firm's first-quarter profit, which beat market expectations, thanks to strong chip demand and a global shift to home working. TSMC...
m2 feature

Apple Silicon M2 Chip Coming to Wave of New Macs

Monday May 24, 2021 2:27 am PDT by
Apple's more powerful "M2" chip is set to come to a wave of new Macs, bringing significant performance and efficiency improvements to a range of new models, according to recent reports. Bloomberg's Mark Gurman previously said that Apple is working on higher-end Apple silicon chips that are expected to "significantly outpace" the performance of the latest Macs that still contain Intel chips,...
iphone12 lineup wide

Apple Supplier Foxconn Expects Shipments to Be Impacted by Global Chip Shortage

Tuesday March 30, 2021 9:37 am PDT by
Apple supplier Foxconn today said that it expects shipments to be cut by 10 percent due to the global chip shortage, reports Nikkei. In an earnings call, Foxconn chairman Young Liu said that the first two months of the quarter were okay, but the company "started to see changes happening this month." Foxconn did not mention Apple specifically, but it is a major Apple supplier and this perhaps ...
face id scan

Apple Making Face ID Sensor Chip Smaller on Upcoming iPhones and iPads

Friday May 14, 2021 4:00 am PDT by
Apple is intending to use a significantly smaller Face ID sensor chip in iPhones and iPads from late this year onwards, according to DigiTimes. Apple has reportedly chosen to scale down the die size of the VCSEL chips used in Face ID's scanner. The move will help Apple cut production costs since more chips can be produced on one wafer, reducing total wafer output. The redesigned VCSEL...
imac with accessories

Apple 'Likely' to Overtake HP as Leading All-in-One PC Vendor

Wednesday May 5, 2021 2:11 am PDT by
Apple's new 24-inch iMac range could help it overtake HP as the leading all-in-one (AIO) computer brand vendor, according to industry sources cited by DigiTimes. The prediction is based on evidence suggesting that more affordable all-in-one PC brands are being impacted much harder by the global chip shortage as suppliers prioritize their shipments to support more premium products in the AIO...
tsmc semiconductor chip inspection 678x452

Construction of Apple Supplier Plant in Arizona 'Well Under Way,' Will Manufacture Chips by 2024

Wednesday June 2, 2021 4:15 am PDT by
Apple chip supplier TSMC is moving ahead with plans for a manufacturing plant in Phoenix, Arizona, according to Bloomberg. In November of 2020, Phoenix city officials approved financial incentives and government support for the new plant. The city agreed to provide $200 million in support to build infrastructure including roads and sewers, according to a notice from the city's council....
qualcomm iphone 7

UK Consumer Watchdog Sues Qualcomm for Allegedly Breaching Competition Law

Thursday February 25, 2021 2:51 am PST by
Around 29 million Britons who own an Apple or Samsung phone could be entitled to a collective £480m payout if a landmark legal claim against U.S. chipmaker Qualcomm is successful. Consumer watchdog Which? is suing the chipmaker for allegedly breaching U.K. competition law by taking advantage of its dominance in the patent licensing and chip markets. As reported by the BBC, Which? alleges ...

Popular Stories

airpodsinear 1

AirPods Save Woman's Life With Feature Everyone Should Know

Friday January 21, 2022 2:13 am PST by
Apple's AirPods have been credited with saving a woman's life after a potentially fatal fall, People reports. When a 60-year-old florist in New Jersey tripped and hit her head in her studio, she lost consciousness and awoke heavily bleeding. With nobody around to call for help, she realized she had her AirPods in, and used a "Hey Siri" command to call 911. An operator was able to stay on the ...
iphone 13 earpods

Apple to Stop Including EarPods With Every iPhone Sold in France From Next Week

Friday January 21, 2022 3:21 am PST by
Apple will no longer include EarPods with every iPhone sold in France, starting on January 24, according to a notice posted by a French carrier (via iGeneration). Apple was previously required to include EarPods in the box with the iPhone due to a French law that required every smartphone sold in the country to come with a "handsfree kit," but the law has now been changed in favor of reducing the ...
peloton tv workout cardio

Apple Floated as Potential Buyer of Peloton

Friday January 21, 2022 6:11 am PST by
Following months of bleak news about Peloton's "precarious state," including the revelation that it has halted production of its bikes and treadmills, Apple is being floated as a potential buyer of Peloton's troubled fitness business. Yesterday, CNBC reported that Peloton will temporarily stop production of its connected fitness products due to a "significant reduction" in consumer demand, a ...
Questionable Design Decisions

Apple's Most Questionable Design Decisions in Recent Memory

Sunday January 23, 2022 2:59 am PST by
Apple has always emphasized the depth of thought that goes into the design of its products. In the foreword to Designed by Apple in California, a photo book released by the company in 2016, Jony Ive explains how the company strives "to define objects that appear effortless" and "so simple, coherent and inevitable that there could be no rational alternative." But every once in a while even...
Spring 2022 Apple Products Feature

New iPad Air, Macs, and iPhone SE With 5G Likely to Be Announced at Apple Event This Spring

Thursday January 20, 2022 8:32 am PST by
Earlier this week, Bloomberg's Mark Gurman tweeted that Apple "will be holding a spring event" to announce a new iPhone SE and other hardware. In a recent edition of his newsletter, Gurman said the event is likely to occur in March or April. Gurman did not elaborate on what "other hardware" will be announced at Apple's purported spring event, but rumors suggest at least four products are...
Upcoming Products 2022 Feature

Gurman: Apple Preparing 'Widest Array of New Hardware Products in Its History' for Fall

Sunday January 23, 2022 10:32 am PST by
Apple is working on a number of new products that are set to launch this fall, and Bloomberg's Mark Gurman says that it will be "the widest array" of new devices that Apple has introduced in its history. In his latest "Power On" newsletter, Gurman explains that Apple is working on four new iPhones (iPhone 14, iPhone 14 Max, iPhone 14 Pro, and iPhone 14 Max), an updated low-end MacBook Pro, a ...
apple watch series 7 aluminum colors yellowbg

Apple Watch Charging Bug Fixed in watchOS 8.4 Release Candidate

Thursday January 20, 2022 4:01 pm PST by
The watchOS 8.4 release candidate that was seeded to developers and beta testers this morning addresses an ongoing bug that could cause some Apple Watch chargers not to work properly with the Apple Watch. Back in December, we reported on a growing number of charging issues that Apple Watch Series 7 owners were facing. Since watchOS 8.3, there have been a number of complaints about...
safari icon blue banner

macOS Monterey 12.2 and iOS 15.3 Release Candidates Fix Safari Bug That Leaks Browsing Activity

Thursday January 20, 2022 1:30 pm PST by
The macOS Monterey 12.2 and iOS 15.3 release candidates that came out today appear to address a Safari bug that could cause your recent browsing history and details about your identity to be leaked to malicious entities. As shared last week by browser fingerprinting service FingerprintJS, there is an issue with the WebKit implementation of the IndexedDB JavaScript API. Any website that uses...
apple college discounts

Apple Walks Back UNiDAYS Verification Requirement for U.S. Education Store

Friday January 21, 2022 12:43 pm PST by
Earlier this week, Apple began requiring that customers taking advantage of educational discounts in the United States verify their status as a teacher, student, or school staff member through UNiDAYS. The requirement was a major change as Apple had never asked customers to go through a verification process in the United States before, and now, just three days after verification was added,...