Qualcomm states that the lack of chips will significantly affect the production of smartphones

The global shortage of chips affects all technology industries. Qualcomm claims that the crisis will also have a significant impact on smartphone production throughout 2021.

According to the director of Qualcomm, opportunities are opening up for the competition

The technology industry has been hit in recent months mainly by the shortage of semiconductors, as the sharp rise in demand for electronics has been responsible for the lack of silicon needed to make chips. This deficit subsequently results in a decline in demand during the pandemic, which was followed by a large and sharp increase shortly afterwards.

Cristiano Amon also indicated that there is more pressure on Qualcomm from manufacturers, as Huawei’s problems after the US case represent an opportunity for competition. It further states that the supply chain was not prepared for this increased demand for components.

It is not known which class of smartphones will be most affected by this crisis, but according to information on the androidauthority.com portal, these will be smartphones using the latest Snapdragon 888 chipset, manufactured using a 5 nm manufacturing process.

All manufacturers in Asia are trying to increase chip production

Chip manufacturers in Asia in particular are trying to benefit from the global chip shortage, as despite the economic crisis caused by the global pandemic, global demand for cars in particular is growing. As mentioned, the demand for smartphones is also rising.

Concerns about chip shortages were reported by several companies, including TSMC and South Korean SK Hynix. Their goal was to increase production capacity and thus overcome this difficult period. TSMC plans to invest up to $ 28 billion in chip development and manufacturing. This is up to 60% higher investment compared to last year. Another Asian chip manufacturer, SK Hynix, plans to move a number of its production plants to China for this reason.

According to gizmochina.com, the combination of supply shortages and growing demand has contributed to higher chip prices. It is estimated that there may be a 4 to 6 percent increase in prices this year. This is likely to last until the fourth quarter of 2021.