Global chip shortage could hamper iPhone production due to a shortage in the supply chain. A new report by Nikkei Asia reveals Samsung’s delay in OLED production could hit iPhone production. The global chip shortage is affecting many industries, including automobile and smartphone.
In February, winter storms in Texas forced Samsung to shutdown its chip fabrication plant. This particular plant contributed to 5% of the world’s supply of chips used in smartphones and automobiles. Samsung also uses the plant to produce OLED displays used on iPhones.
The Samsung Texas plant manufactures telecommunications chips for the U.S. semiconductor giant Qualcomm. The facility also produces chips for organic light-emitting diode panels and image sensors.
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.”
The report also highlights how global production of 5G phones could plunge by 30%. Even the NXP semiconductors plant in Texas has been hit by the freeze and is shutdown. Samsung accounts for a significant chunk of contract, and the crippled production could have severe effects on smartphone global smartphone production.
Apple registered a strong growth despite the pandemic last year. However, Apple suppliers closed factories due to the pandemic delaying iPhone 12 launch. Nikkei Asian report doesnt mention which iPhone models production will be affected. However, the report talks about OLED display production being disrupted. Thus only premium iPhone models production might be delayed. On the brighter side, Samsung is striving hard to resume operation in the Texas plant.
[via Nikkei Asia]