DEAL Galaxy S24 FE, Galaxy Watch 7. Subscribe today and be the first to learn about One 7 beta!

SamMobile has affiliate and sponsored partnerships. If you buy something through one of these links, we may earn a commission.

News For You
News For You
Notifications

The chip shortage that already crippled Samsung just turned ugly

Business
By 

Last updated: July 24th, 2021 at 14:55 UTC+02:00

When Samsung first started sounding the alarm about a major chip shortage destined to shake the tech industry to its core, we believed it. That is to say, we were expecting things to be bad come the second half of the year. And so they were – or are, if you want to be pedantic.

But now? Now, they're starting to get ugly. It's no longer just Samsung that's quite obviously feeling the weight of the lack of modern silicon. The entire technology industry is very much under duress right now. And lead times have already reached unprecedented highs.

From auto parts to smartphones, every tech and tech-adjacent business is suffering

Even Taiwanese players such as Delta Electronics, Foxlink, and FSP have run out of ideas while begrudgingly extending their lead times by one or two weeks, only to do so again – and again. Right now, the waiting lists for certain electronics such as power supplies and anything based on high-end integrated circuitry are up to six months long.

Samsung's core business might not seem to be impacted so severely, but that's largely because the company hasn't yet shared much details on how its handling the crisis. Behind closed doors, however, its 2021 mobile roadmap has definitely suffered as a result.

Desperate times call for desperate factory repurposing. But nothing Samsung does right now in an attempt to alleviate the situation will likely have immediate effects. So, while the Chinese and Taiwanese tech sectors are planning IC capacity expansions of their own and Samsung keeps reshuffling its consumer electronics plans, the question that remains is just when is this going to end?

BusinessGeneral Samsung Foundry
Galaxy AI summarized

Scroll for more related content
News For You

You might also like

Samsung loses out on Snapdragon 8 Elite fabrication to TSMC

Samsung loses out on Snapdragon 8 Elite fabrication to TSMC

Samsung Foundry has been finding it difficult to compete with TSMC. Some of the world's leading chip designers are opting for the latter to get their chips fabricated. This means that Samsung loses out on billions of dollars in business, despite having invested significant sums in its foundry to provide manufacturing capacity for advanced chips. […]

  • By Adnan Farooqui
  • 1 week ago
Nvidia could get some of its gaming chips made by Samsung

Nvidia could get some of its gaming chips made by Samsung

Over the past couple of years, Samsung has lost two big-name chip clients—Nvidia and Qualcomm—to TSMC due to power consumption issues. However, Nvidia could come back to Samsung Foundry in the future, as it doesn't want to rely too much on TSMC for its future chips. This is great news for Samsung. Nvidia's future GPUs […]

  • By Asif Iqbal Shaik
  • 2 weeks ago
Samsung makes 24Gb GDDR7 DRAM chips for next-gen GPUs

Samsung makes 24Gb GDDR7 DRAM chips for next-gen GPUs

Samsung has announced it has developed the world's first 24GB GDDR7 DRAM memory chip for GPUs. This high-capacity memory chip, featuring the fastest performance in the industry, will be used in flagship GPUs next year, advancing performance and efficiency. It was also the first brand in the world to complete the development of GDDR7 chips. […]

  • By Asif Iqbal Shaik
  • 2 weeks ago
Samsung to make 2nm AI accelerator chips for Rebellions

Samsung to make 2nm AI accelerator chips for Rebellions

Samsung has announced that it has partnered with chip firms ADTechnology, ARM, and Rebellions for the development of an AI CPU chiplet platform. Despite being the world's second-biggest contract chip manufacturer, its advanced process nodes haven't been used by many big-name brands recently, but its 2nm Gate-All-Around (GAA) process will be used by Rebellions. Samsung […]

  • By Asif Iqbal Shaik
  • 2 weeks ago
Samsung about to cut high-ranking executive jobs across key divisions

Samsung about to cut high-ranking executive jobs across key divisions

Although Samsung recently said it has no plans to spin off its Foundry and System LSI divisions, the tech conglomerate will reportedly cut significant executive job numbers throughout its chip-making arms before the end of 2024. A new report citing industry sources says the head of the Device Solutions (DS) division, under which Samsung's semiconductor […]

  • By Mihai Matei
  • 3 weeks ago
Samsung Foundry ‘hungry to grow the business’, won’t spin off

Samsung Foundry ‘hungry to grow the business’, won’t spin off

A few days ago, executives representing Samsung's financial division, i.e., Samsung Securities, suggested that the tech conglomerate could spin off the Foundry and System LSI divisions and list them on the US stock market. The chief of Samsung Electronics has now responded, saying that the spin-offs are not in the cards. Market watchers expect Samsung's […]

  • By Mihai Matei
  • 3 weeks ago