Global chip crisis now cripples Qualcomm

We all know that the global tech market is struggling to keep up with the demand for high-performance tech, as there is a shortage of chip supply. In recent news, it was revealed that Qualcomm Inc is also struggling to keep up with the demand for its processor chips used in smartphones and gadgets, as a chip shortage that first hit the auto industry spreads across the electronics business.

Samsung Electronics Co Ltd, the world’s largest smartphone maker, is reportedly experiencing a shortage of Qualcomm’s application processors. These chips are the heart of smartphones, and a shortage of Qualcomm chips affects the production of Smartphones.

As we already know that Huawei’s smartphone brand is falling, and most of its customers are migrating over to other brands. As such android phone makers seek to win over customers abandoning phones produced by Huawei Technologies Co Ltd. for this reason alone, the demand for Qualcomm produced chips are soaring high. As such the company has found it hard to meet this higher-than-expected demand, in part due to a shortage of some subcomponents used in its chips.

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The demand for consumer electronics has increased globally and it has affected several tech industries. The global chip shortage that has idled car factories is now centered largely on chips made using older technology rather than the advanced phone processors Qualcomm designs.

But problems in one area of the complex chip supply chain can bleed into others and the fast-changing market dynamics can trip up chip companies that must set mass production plans years in advance.

Qualcomm incoming Chief Executive Cristiano Amon told that “We still have our demand higher than supply.”

According to sources, the Samsungs factory in Texas that makes some of Qualcomm’s radio frequency transceivers was forced to halt operations last month due to power shortages caused by winter storms. It is yet another factor that led to a decrease in the supply of Qualcomm’s chips.

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