Qualcomm is in an intense effort to correct disruptions in the supply chain by focusing on Snapdragon 888 production in this period when the need for chips is growing like an avalanche.
The past six months have gone down in history as a process where demand for AMD / NVIDIA graphics cards, Ryzen processors and even new game consoles such as PlayStation 5 and Xbox Series X could not be met. In this period when most technological products and hardware are not available in stocks, Qualcomm is undoubtedly among the most affected. The company has been struggling to keep up with orders from brands in different sectors recently. Especially the need for the Snapdragon 888 chip makes itself felt in the technology industry.
Qualcomm, in cooperation with companies that work in many different sectors, is overwhelmed with Snapdragon 888 SoC orders, according to some sources. Although this situation offers a very good earning opportunity for the famous chip maker, most of the orders mentioned did not reach. “This is not a normal famine, this is an extreme chip scarcity,” said Lu Weibing, Managing Director of Redmi, on the issue. said.
Snapdragon 888 is featured in flagship smartphones such as the Samsung Galaxy S21 series and ASUS ROG Phone 5. These problems in chip supply will not only affect high-end smart phone models, but are also rumored to delay the availability of most entry and mid-range phones. The reason for this is that Qualcomm has to produce only the Snapdragon 888 processor for a long time to respond to the demands. In addition, in a new report published by Reuters, it was stated that Samsung may lose its leadership in global smartphone sales due to production problems on the Qualcomm front. It is a great fact that smart phone manufacturers will undoubtedly be affected by what happened.
There are different reasons for this shortage of chips, but the most interesting is that Huawei was subject to US sanctions. Without access to Google apps and services, Huawei smartphones are not adopted by users. As everyone turns to smartphone models with Google services, the manufacturers’ need for Qualcomm increases.
Despite the concerns of brands and analysts about adequate chip supply, Qualcomm believes it will be able to reach its shipment estimates for the second quarter of 2021. There is complete uncertainty as to when the problems encountered will be resolved.