Interestingly, a report by
Reuters quoted the chairman of Foxconn, one of Apple’s main suppliers, that the chip shortage will have “limited impact” on Apple’s production lines as it’s a large company with “proper precautionary planning”.
|Major issue||Global chip crisis may now start to impact smartphone and PC brands after hitting car makers hard|
|Texas winter storm impact||Samsung chip fabrication plant in Texas, which accounts for 5% of global chip supply, shut since February 16 after the storm which claimed at least 57 lives.|
|Shut Samsung plant impact||This plant makes telecom chips, image sensors and LED panels. Samsung is a major supplier of OLED panels for Apple.|
|Samsung’s trouble||Samsung will not launch the Galaxy Note series in 2021 due to this crisis. Apple may get affected if OLED panel supplies fall but it’s better positioned in chip supply compared to others.|
Texas winter storms force Samsung to shut chip plant
New reports now claim that while Apple may be better placed than other companies, largely due to its influence, the Cupertino-based tech giant may soon have to struggle for crucial components required for iPhone, MacBook, etc. And somewhere a shut Samsung chip fabrication plant in Texas, US may be responsible for this.
(Over 4 million people were without power in Texas in February due to the winter storms, as per report by Reuters)
As per a report by
Nikkei Asia, the said Samsung plant accounts for 5% of the global chip supply and it’s shut since February 16 after a cruel winter storm which is said to have claimed at least 57 lives.
OELD panel supply may dry up for Apple
The shut Samsung plant can cause a rift between the demand and supply of iPhones as it makes telecom chips for Qualcomm, LED panels and image sensors. This plant adds to the supply of Samsung OLED panels to Apple. As for other smartphone brands, especially Android players which rely on Qualcomm for chipsets, you may delay in launches or even face availability issues.
“The shutdown is expected to result in a 5% drop-off in global smartphone production during the second quarter. Among 5G-compatible smartphones alone, global production is projected to shrink by 30%,” the report claimed.
The only relief in sight is if Samsung is able to quickly restart its plant. But there is no official word from Samsung regarding the same.
No new Galaxy Note smartphone this year
Echoing Foxconn chairman’s comment, an analyst at Samsung Securities was quoted in a report by
Bloomberg that “the tightened supply of Qualcomm AP chips produced by TSMC is affecting everybody except Apple.” But more than chips, the concern is now around OLED panels which Apple’s users in all the models of its latest iPhone 12 series phones.
While Apple may have done its homework properly to keep its shop running well Samsung on the other hand, may be the worst affected as reports claim that Samsung will not be able to launch the Galaxy Note series smartphones in 2021 due to chip shortage.