The effects of the COVID-19 Pandemic to date have certainly created big problems for everyone. One of them is in the smartphone chipset production industry, which makes supply increasingly scarce. Of course this has an impact on the production of new smartphone phones for vendors.
Chipset scarcity is currently sweeping all the electronics industry, not only from the smartphone production sector. There are even predictions that say that this chip shortage will occur until 2022.
Impact of Chipset Scarcity
The chipset itself is one of the most important components in the manufacture of electronic products, such as smartphones. With the increasing scarcity of chips, this has resulted in delays in the supply of smartphone components. COVID-19 is the reason many chip factories in China have stopped their production activities.
The current situation is getting worse with Panic Buying from other companies to secure their stocks. This led to a very high increase in the price of the chip.
Many chips have experienced drastic price increases. For example, the Microcontroller from STMicroelectronics has increased up to seven times from USD 2 to USD 14.
Companies such as Samsung, Xiaomi, and Realme have confirmed this scarcity, a rare chipset problem now has a really bad impact on all manufacturers. Samsung Electronic’s co-CEO and mobile chief, Koh Dong-Jin, informed that there has been an imbalance in demand for the supply of Qualcomm Smartphone processors.
Vice President Xiaomi said “This scarcity has reached an extreme level”. Because the Xiaomi cellphone, which usually offers cheap cellphones, also follows the increase in prices. Because it is caused by the problem we are discussing, namely the scarcity of smartphone chipsets.
All Smartphone Manufacturers Cannot Move Much
Meanwhile the Foxconn company is also affected by the rare Chipset. One of them is Apple, which is currently one of the biggest producers of Foxconn, was forced to postpone the launch of the new iPhone 12 and other products.
Meanwhile, on the one hand, the demand for new smartphones continues to increase during the pandemic, where everyone is required to move remotely. But on the one hand, due to the increasing demand for smartphones, there is an imbalance between the demand and the supply of chips for the manufacture of smartphones itself.
With the drastic increase in chip prices, smartphone manufacturers are forced to pay dearly and have an impact on the increase in stock prices for new smartphones. How do you think about this rare Chipset news? Write your opinion in the comments column below.