Chip shortage: Samsung issues warning


According to co-CEO Koh Dong-jin, Samsung is also suffering the consequences of global microchip scarcity.

Bloomberg says Koh listed the “serious imbalance in supply and demand of chips in the IT sector globally” as a possible big problem for Samsung in 2021 at Samsung’s annual meeting in Seoul. The chip crisis has wreaked havoc on the world’s manufacturing industry, from automobiles to video game consoles.

In 2021, Samsung is scheduled to launch and introduce two big smartphones: the annual updates to the Galaxy and Galaxy Note flagship smartphones.

Koh informed shareholders at the meeting that the latter may miss 2021. According to Bloomberg, he wrote, “It could be a burden to unveil two flagship models in a year,”

In previous years, Samsung has regularly introduced both the Galaxy and Galaxy Note smartphone versions. The former normally makes its appearance in late winter or early spring, whilst the latter does so in late summer or early autumn.

Despite the fact that Samsung manufactures its own devices, its smartphones depend on third-party components such as Qualcomm processors. Apple, on the other side, manufactures its own processor for the iPhone, enabling it to escape any of the production problems that electronics suppliers would face in 2021. According to Samsung Securities analyst MS Hwang, the processor shortage is impacting “affecting everybody except Apple, “Furthermore, Apple’s key manufacturing partner in China has told consumers that the chip shortage would have no effect on demand.

Earlier, Hon Hai Precision Industry chairman Liu Young-way said in February, “Since most of the customers we serve are large customers, they all have proper precautionary planning therefore, the impact on these large customers is there, but limited.”


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