Samsung Chip Shortage Could Affect Apple [Report]

Samsung Chip Shortage Could Affect Apple [Report]

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A shortage of chips that first affected the auto industry has spread to smartphones and personal computers, reports Nikkei. The shortage has been exacerbated by the shutdown of Samsung's plant in Texas following a winter storm.

The Texas fabrication plant is responsible for 5% of global chip supply and it's been idled since February 16th.

"There's a serious imbalance in supply and demand of chips in the IT sector globally," said Samsung co-CEO Koh Dong-Jin, at a shareholders' meeting on Wednesday.

While the Texas plant makes chips for Qualcomm, it also produces chips for Samsung's image sensors and organic light-emitting diode panels.

The supply crunch hitting Qualcomm will affect a wide range of smartphone makers that rely on the company for key components. Apple, which procures OLED panels from Samsung, could also face disruptions in iPhone production. Samsung's Austin plant accounts for roughly 5% of the capacity at contract manufacturers that use 12-inch wafers, according to Taiwanese research firm TrendForce. The shutdown is expected to result in a 5% drop-off in global smartphone production during the second quarter.

Although Samsung is scrambling to restore operations at the plant it doesn't have a timetable for the restart.

More details in the full report linked below...

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Samsung Chip Shortage Could Affect Apple [Report]