During the annual meeting with investors in Seoul, a representative of Samsung stated that the company is currently facing a serious shortage of semiconductor chips. The shortage is expected to deepen in the coming months, which could impact some segments of the South Korean tech giant's business.
One of the heads of Samsung's most important division, Samsung Electronics DJ Koh, said that the ongoing global shortage of chips could pose a problem for the company in the second and third quarters of this year. Since the outbreak of the coronavirus pandemic, there has been an unprecedented demand for electronic devices such as smartphones, tablets, laptops, computers, game consoles, but also, for example, cloud servers. The shortage of chips on the market has been felt for some time by technological giants such as AMD, Intel, Nvidia and Qualcomm, whose orders are fulfilled by foundries of Samsung and TSMC with delays. In addition to them, however, the lack of chips also affected large car companies such as GM or Toyota, which had to suspend car production for several weeks.
The lack of chips was also one of the reasons why this year we will not see a new generation of the series Galaxy Footnotes.
“There is a serious global imbalance in the supply and demand of chips in the IT sector. Despite the difficult situation, our business leaders are meeting with foreign partners to solve these problems. It's hard to say that the chip shortage issue has been 100 percent resolved," Koh said. In addition to Samsung, Apple's main supplier Foxconn has also expressed concern about the chip shortage.
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