Samsung Galaxy S21 could fall victim to global chip shortage
The global chip glut has begun to affect Qualcomm's ability to supply to Samsung, according to a report from Reuters.
The shortage has not only affected chips meant for mid-and low-end Samsung phones, but also the Snapdragon 888 which powers the Galaxy S21 series. It's not clear if this has impacted the manufacturing of the S21 phones, which would be unfortunate to say the least, as the handsets are reportedly performing better than their predecessors.
Qualcomm is said to be prioritizing its flagship chip at the expense of lower-end SoCs.
Xiaomi's vice president Lu Weibing had previously cautioned that the chip shortage was extreme.
Qualcomm's incoming Chief Executive Cristiano Amon had recently said that demand was higher than supply. This might partially be because of restrictions placed on Huawei by the US, which have caused consumers to turn to other Android companies which typically use Qualcomm's chips. Huawei's phones are mostly powered by its own Kirin silicon.
The semiconductor industry is tightly integrated and even seemingly minor shortages could lead to increased lead times. The shortage is also leading to panic buying and driving up costs. For example. a microcontroller-unit chip from STMicroelectronics, which used to cost $2, now sells for $14.
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