Chip shortage will hit smartphone makers harder than we thought, researchers say

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New research suggests that chip shortages, which have severely hampered makers of smartphones and other technology, are expected to be hit harder than previously thought.

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According to Counterpoint Research, the number of smartphones shipped next year is expected to grow by only six percent, compared to initial estimates of nine percent.

It was thought the industry would restart after the impact of the coronavirus in 2020, with vendors placing large component orders at the end of the year.

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However, it is reported that these businesses are receiving only 80 per cent of their requests, and the situation is likely to worsen.

Many manufacturers tried to weather this storm by hoarding some components such as application processors and camera sensors, but new components are no longer arriving as requested and many companies are losing stock.

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“Semiconductor shortage affects all brands in the ecosystem. Samsung, Oppo, Xiaomi have all been affected and we are lowering our forecasts. But Apple Tom Kang, research director at Counterpoint Research, said AP seems to be the most resilient and least affected by the lack of conditions.

For application processors, a key component in smartphones, the reduction was triggered by low yield rates – leading to a chain reaction for companies Qualcomm And mediatek who rely on foundries to make their chips and in turn supply them to smartphone makers.

It’s not just smartphones that have been affected; Microsoft’s Xbox chief Phil Spencer has said that both the Xbox Series X and its rival PlayStation 5 will be difficult to buy in 2022.

“I think it’s probably too different to talk about it as just a chip problem,” Spencer said. “When I think about it, what’s the point of getting the parts needed to build a console today, and then taking it to markets where there’s demand, there are a number of pinch points in that process.”

The CEOs of Intel and Taiwan Semiconductor Manufacturing Company (TSMC) say that while Spencer hasn’t been the only executive to voice his concerns, the shortfall could go on for two more years.

The pandemic had created a “cycle of explosive growth in semiconductors,” Intel chief executive Pat Gelsinger has said. “But while the industry has taken steps to address near-term constraints, it may still take a few years for the ecosystem to overcome shortages of foundry capacity, substrates and components.”

With 12 percent of the world’s chip manufacturing already taking place in the US, the country is attempting to boost its domestic supply to build TSMC a $12 billion chip factory – but such development will take years to complete. can.

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Credit: www.independent.co.uk /

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