Qualcomm Inc, popularly known as the world's largest smartphone chip maker warns the public regarding its struggle in meeting up with demands. The company signals that there is a global semiconductor shortage that is now spreading.
Qualcomm semiconductor shortage
According to the report by SCMP, according to Christiano Amon, the incoming CEO, the current shortage in the whole semiconductor industry is going across the board. Just like a lot of chipmakers, Qualcomm still outsources the production of these chips to companies like the Taiwan Semiconductor Manufacturing Co as well as Samsung Electronics Co. these particular suppliers are all trying and are still failing in their attempt to adjust to the vigorous rebound when it comes to the demand.
The auto sector has also complained about this particular problem most recently. However, Qualcomm's own comments also show the problems are actually broader. When COVID-19 pandemic had first struck back in the early 2020s, the chip orders initially started to collapse. However, remote work and studying has then increased the total demand for computers. Car buying has also started to surge as more and more people try to avoid using public transport. These events, in turn, has caused both the auto and electronics makers to all re-up their overall chip purchases.
Semiconductor shortage 2021
Amon even stated that orders for the chips that would run computers, cars, as well as a lot of internet-connected devices are now swamped across the industry. The industry reportedly relies heavily on just a handful of different factories coming from Asia Supply that should improve during the upcoming second half of 2021.
Qualcomm shares have reportedly fallen about 5% when it came to extended trading. The stock was then closed at $162.30 on Wednesday in New York leaving the total price up 6.5% this 2021.
The company had also reported its quarterly results back on Wednesday and even gave an upbeat forecast. However, this still did not satisfy a number of analysts and investors who have now become more bullish regarding Qualcomm as of recent. The outgoing CEO Steve Mollenkopf stated that Qualcomm's total performance was actually curbed by certain supply constraints.
Read Also: Qualcomm X60: Future of 5G Smartphones-What is the Difference with X55 Modems?
GM semiconductor shortage
Apple Inc, which is known as a major Qualcomm customer had stated last week that the sales of the high-end iPhone 12 models were actually limited by the total availability of a number of these components. Earlier on Wednesday, GM or General Motors had warned about the global semiconductor shortage reducing the company's production this year as the popular carmaker now plans downtime at its three different plants found in a report by Yahoo finance.
Qualcomm is known as the biggest maker of chips that are able to connect smartphones to the wireless networks and also for supplying processors giving the smartphones their very own computer-like capabilities. With customers including both Samsung and Apple, the company's own projections are said to be a closely watched indicator pertaining to the health of the whole mobile phone market.
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This article is owned by Tech Times
Written by Urian Buenconsejo
