According to sources quoted by TheElec, Samsung Mobile’s CEO TM Roh discussed the supply of application processors (AP) and RF chips at a meeting with more than 30 major smartphone component suppliers in early November this year.
The source said that chip shortage is one of the main topics of the meeting. In 2021, Samsung Electronics’ smartphone production was affected by a shortage of application processors. The company was unable to produce enough smartphones as planned due to shortages.
Samsung’s mobile business unit believes that the shortage will continue until 2022, and the tight supply of AP and RF chips will continue until the second half of next year. Therefore, ensuring a stable supply of chips is the key to achieving this year’s business goals.
Samsung’s mobile business unit also predicts that next year foundry companies may increase service prices like this year. In order to minimize the impact of this trend, Samsung signed an annual contract with the foundry to ensure production capacity in advance. In addition, the division will also reserve up to 4 weeks of chip inventory instead of 2 weeks as it is now.