The current global chip capacity crunch, which has already affected Qualcomm's supply to Samsung, is set to widen. According to the report, the chip shortage not only affects mid - and low-end chips, but also limits Gao's ability to supply the Snapdragon 888 SoC to Samsung's Galaxy S21 series phones. The extent of the impact on Qualcomm's production capacity is not yet known, but the company remains confident that it will meet its second-quarter sales targets.
The lack of chip capacity has affected supply to Samsung, and Qualcomm will give priority to ensuring high-end SOC production
Qualcomm officials said, "will prioritize the supply of high-end SoC chips, rather than low-priced entry-level chips." Qualcomm has had to cut back on its smartphone production because of tight supply of a range of chips.
At present, the chips for smart phones are in short supply. Cristiano Amon, Qualcomm's incoming chief executive, said that US restrictions on Huawei, one of the reasons for the current shortage of chips, had forced handset makers such as Honor to choose chips from other companies.
In addition to high value-added chips such as mobile phone SOC, basic components such as resistors, capacitors and diodes are also facing varying degrees of price increases, which further increases the pressure on manufacturers.