Qualcomm’s Processors Are in High Demand—and Short Supply

Qualcomm’s Processors Are in High Demand—and Short Supply

Round this time final 12 months, the market noticed an enormous uptick in . On the similar time, automotive firms have been ramping up chip demand for car manufacturing. As work-from-home orders taper and automotive manufacturing crescendos in 2021, .

 

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Chip scarcity’s impact on automotive shares. Picture used courtesy of Bloomberg and

One firm that has been significantly affected by the scarcity is Qualcomm, the California-based producer finest identified for its wi-fi know-how chips for smartphones. How has Qualcomm’s chip manufacturing slowdown affected smartphone design and the telecom sector at giant?

 

Demand Soars for Qualcomm Chips

As Android cellphone producers attempt to win over customers abandoning Huawei merchandise, demand for Qualcomm’s chips has elevated exponentially over the previous few months.

Qualcomm has struggled to fulfill this demand, nevertheless, as a result of scarcity of among the subcomponents utilized in its chips, which means that .

The truth is, Samsung, the world’s largest smartphone maker, has delayed the rollout of some fashions. Extra particularly, the South Korean tech big is experiencing a scarcity of Qualcomm’s utility processors, which sit on the core of the Samsung telephones.

 

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Qualcomm Snapdragon 888. Picture used courtesy of

In keeping with Reuters, a supply at Samsung mentioned that the . One other supply says that there’s additionally a scarcity of however didn’t say whether or not that is what’s inflicting issues for Samsung.

 

Elements in Gradual Down: Snapdragon and Storms

The Snapdragon 888 remains to be a comparatively new know-how fabricated utilizing the 5nm course of, which is tough to scale up shortly in response to spikes in demand. There’s additionally the truth that final month’s storms pressured Samsung’s Texas chip plant, the place a few of Qualcomm’s radio frequency transceivers are made, .

Regardless of all of this, Qualcomm, which just lately , is assured that it’s going to hit its Q2 2021 gross sales forecast revealed in February .

 

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Qualcomm income streams by trade. Picture used courtesy of

Roadblocks in Taiwan-based Manufacturing

The semiconductor scarcity continues to dominate headlines with current developments seeing TSMC public sale off its extra wafer capability at a 15-20% premium. In the meantime, the .

There have been additionally fears {that a} drought in Taiwan, , might additional gas the semiconductor scarcity. Regardless of Taiwanese officers saying that there’s sufficient water to final till Might, Qualcomm’s incoming CEO believes that .

 


 

How have chip manufacturing holdups affected your design cycles? Have any of your initiatives been slowed down due to these international shortages? Share your experiences within the feedback beneath.