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While Qualcomm is still confident it can hit its second-quarter sales target, a contract maker of several major smartphone companies told Reuters it would cut smartphone shipments because it experienced a “ shortage of a range of components ” from the chipmaker.
Xiaomi vice president Lu Weibing previously warned that the chip shortage was extreme.
Qualcomm’s new chief executive, Cristiano Amon, recently said demand outstrips supply. This could in part be due to restrictions imposed on Huawei by the United States, which have caused consumers to turn to other Android companies that typically use Qualcomm’s chips. Huawei’s phones are mostly powered by its own Kirin silicon.
The semiconductor industry is tightly integrated, and even seemingly minor shortages could lead to increased lead times. The shortage also leads to panic in purchases and drives up costs. For example. a microcontroller unit chip from STMicroelectronics, which previously cost $ 2, now sells for $ 14.
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