Qualcomm is struggling to meet a demand surge for its Snapdragon chipsets with multiple supply challenges affecting its manufacturing strategy.
Samsung says Snapdragon is facing supply shortages right across the Snapdragon line, all the way up to the flagship Snapdragon 888. Qualcomm calls this one a leak. What does this mean for Samsung and its customers in the US? Why there is a lag in phone development (in this case with Chinese manufacturers)? According to an executive at a smartphone ODM company with several major brand contracts, his company will have to reduce shipment forecasts this year because of a general component shortage from Qualcomm.
A few factors are suspected to be contributing to the squeeze, some of which include: the devastating winter storms in Texas that have cut power to a Samsung plant that makes radiofrequency transceivers for Qualcomm; a slowdown in power management chip production in China and Taiwan, and; scarcity-driven panic buying in the wider chip market that has rocketed prices exponentially without the guarantee of stock arriving just in time. Qualcomm is allegedly directing most of its precious component to building more Snapdragon 888 product than lower-end chips.
What hasn’t helped is the burdens of Huawei Tech the Chinese manufacturer is under an import ban from the U.S. that effectively prevents the company from using goods, services, and intellectual property like the Android OS and Arm chips. As such, those who had previously been fans of the firm’s affordable yet powerful phones have either had to deal with major product changes or, more likely, switch brands.