Samsung: the supply shortage of AP and RF chips will continue until the second half of 2022

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In the past year or so, the word shortage seems to have been tied to the semiconductor industry, and the global shortage of chip supply has affected all walks of life. For ordinary people, the smartphones they use every day have also been impacted. Samsung, as an important supplier in the smartphone supply chain, and the largest brand of Android phones obviously has a say in this regard.

Samsung increase chip price

Image: Samsung

According to The Elec report, the head of Samsung’s mobile business recently met with more than 30 partners and supplier representatives to discuss shortages in the supply chain. At the meeting, Samsung pointed out that the supply shortage of AP and RF chips will continue until the second half of 2022. Samsung is taking a number of measures to alleviate the supply shortage, such as promoting the signing of annual contracts with foundries or increasing the cycle of chip reserves, from meeting the supply-demand of two weeks in the past to four weeks.

In the past month or so, due to supply chain shortages, more than Samsung has affected the sales of new products. Due to the lack of sufficient power management integrated circuit chips (PMIC), the production of DDR5 memory has become difficult, not only the price has become higher, but the delivery cycle may also be longer, Wi-Fi chips are out of stock, leading to a half-year to one-year wait for the delivery time, increasing the cost pressure of manufacturers, many digital camera manufacturers have suspended sales of some models.

In order to cope with the Galaxy S22 series and Galaxy S21 FE released in the first half of next year, Samsung has started to produce the components required for the new smartphone in October this year to ensure the smooth release of the new product. If the supply chain shortage is severe, or the cycle is longer, Samsung may also take other measures to deal with it.

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