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The global chip shortage affecting the automotive industry also threatens the PC and smartphone manufacturing industries, possibly including iPhone production. Higher chip demand brought about by the epidemic and Taiwan's water shortage have restricted the global supply of chips. Recently, due to the destruction of the snow-covered winter blizzard in Texas, the production of chips at Samsung's Austin factory has been suspended since February 16, which exacerbated the situation.
The Texas plant produces chips for Qualcomm. This has a great impact on the main processor of the Android device, but a new report claims that the chips essential to the OLED controller are also produced there, which may lead to a reduction in iPhone production. The iPhone 12 series is using OLED displays throughout the series.
The global processor shortage first affected the automotive industry, and now it spreads to the consumer electronics industry. This situation has been going on for several months. In February, Xiaomi Vice President Lu Weibing stated that this situation is "not a shortage, but an extreme shortage."
Car production was originally the first victim of a global shortage, but when the winter storm hit Texas in February, car production was hit again. Both NXP Semiconductors and Infineon Technologies, which produce chips for the automotive industry, closed their Austin plants. Although NXP has since resumed operations, it said that the suspension caused one month's supply loss. The aftermath of these car chip cuts also caused Tesla and Honda's plants in the United States and Canada to stop production.
The global processor shortage first affected the automotive industry, and now it spreads to the consumer electronics industry. This situation has been going on for several months. In February, Xiaomi Vice President Lu Weibing stated that this situation is "not a shortage, but an extreme shortage."
Car production was originally the first victim of a global shortage, but when the winter storm hit Texas in February, car production was hit again. Both NXP Semiconductors and Infineon Technologies, which produce chips for the automotive industry, closed their Austin plants. Although NXP has since resumed operations, it said that the suspension caused one month's supply loss. The aftermath of these car chip cuts also caused Tesla and Honda's plants in the United States and Canada to stop production.
The layoffs in the consumer electronics industry, which were previously overshadowed by auto layoffs, were accelerated after the storm. The closure of Samsung's Austin factory has created a domino effect that is affecting the entire smartphone and PC industry.
The 12-inch wafer output of Samsung's Austin factory accounts for about 5% of contract manufacturers' global output, which is expected to cause a 5% drop in global smartphone production in the second quarter. If only looking at 5G smartphones, this decline is even higher, and it is expected to fall by 30%. In the fourth quarter of 2020, Samsung and TSMC accounted for 72% of global contract chip production.
"The global IT industry has a serious imbalance between supply and demand for chips," said Koh Dong-jin, co-CEO of Samsung overseeing Samsung's mobile division. Koh said that Samsung is streamlining its smartphone product line, and the victim of supply constraints may be the Galaxy Note series in 2021.
The PC industry has also been affected by the domino effect of the bankruptcy. "Supply cannot keep up with demand," said Jason Chen, CEO and chairman of Acer. "Our employees are racing against time to ensure the supply of parts. This is unprecedented in the personal computer industry." Another PC industry giant, Asustek, also expects shipments to drop sharply.
In February, US President Biden signed an executive order to solve the problem of chip shortages. It provides for a 100-day review of the supply of semiconductors and advanced batteries used in electric vehicles.
The 12-inch wafer output of Samsung's Austin factory accounts for about 5% of contract manufacturers' global output, which is expected to cause a 5% drop in global smartphone production in the second quarter. If only looking at 5G smartphones, this decline is even higher, and it is expected to fall by 30%. In the fourth quarter of 2020, Samsung and TSMC accounted for 72% of global contract chip production.
"The global IT industry has a serious imbalance between supply and demand for chips," said Koh Dong-jin, co-CEO of Samsung overseeing Samsung's mobile division. Koh said that Samsung is streamlining its smartphone product line, and the victim of supply constraints may be the Galaxy Note series in 2021.
The PC industry has also been affected by the domino effect of the bankruptcy. "Supply cannot keep up with demand," said Jason Chen, CEO and chairman of Acer. "Our employees are racing against time to ensure the supply of parts. This is unprecedented in the personal computer industry." Another PC industry giant, Asustek, also expects shipments to drop sharply.
In February, US President Biden signed an executive order to solve the problem of chip shortages. It provides for a 100-day review of the supply of semiconductors and advanced batteries used in electric vehicles.