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How serious is the core shortage? Samsung president went to the US twice to fight for more supply of mobile phone processors: both were rejected
Oct 14 , 2021

How serious is the core shortage? Samsung president went to the US twice to fight for more supply of mobile phone processors: both were rejected

 

2021 is a rare industry "chip shortage" year. Many chips in automotive, PC, mobile phone, IoT and other fields are in short supply. According to the latest news, Samsung’s mobile phone business president TM Roh (Lu Taiwen) went to the United States twice in March and July this year to secure sufficient supply of application processor chips. In a narrow sense is usually the application processor core CPU, it seems the main object is to visit Qualcomm.

 

However, the result was embarrassing and was rejected both times. The other party said that they also hope to increase chip production capacity, but they cannot promise just to increase the number of Samsung.

 

The report pointed out that Lu Taiwen even left his deputy in the United States for three months until the problem was resolved. Samsung responded that the trip is not empty-handed, but a certain amount of supply is guaranteed. Considering Samsung's position as the world's largest mobile phone manufacturer, it is so difficult to negotiate such a contract, which shows the severity of the chip shortage.


Analysts said that Samsung’s total shipments of mobile phones this year are expected to be around 260 to 270 million units, which is lower than the previous forecast of 290 to 300 million. Among them, the Galaxy S series will again be less than 30 million units.


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