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Musing-Weekly Newsletter

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Chip Shortage Affects Samsung 
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The chip shortage continues to spiral downwards to impact consumer devices. Sony suggested it can’t produce enough PlayStation 5 consoles to satisfy demand, possibly until 2022 (Bloomberg). Nintendo warned its much less bleeding-edge Switch, now four years old, might be hard to get too. Back in March, Xiaomi warned of potential delays or cost increases to its next releases, too. Even Samsung, and its world of products, is suffering.
  • Reports from South Korean media suggest the Galaxy A52 5G and Galaxy A72 are reportedly facing launch delays in key markets due to a lack of chipsets.
  • Samsung is reportedly finding it tough to procure chipsets from Qualcomm, namely the Snapdragon 720G and Snapdragon 750G — the two 8nm chips that power its mid-rangers. Without a reliable supply of this silicon, it’s impossible for Samsung to produce a steady stream of these devices.
  • While the Galaxy A52 5G and A72 are available in parts of the US and EMEA, respectively, neither phone is available beyond these regions.”
  • Not mentioned in the report is the Samsung Galaxy A82, which we expect to launch shortly, but with an older flagship chipset in the Snapdragon 855 Plus.
  • And it’s unclear if the coming flagships, in the foldable Galaxy Z Fold 3 and Galaxy Z Flip 3 might be impacted, or the Galaxy S21FE.
 
The most popular Samsung smartphone last year was the Galaxy A51, a mid-priced (~$400) phone that was released on December 16 in 2019, with a 5G version released in April of last year (~$500).  The higher-tier, Galaxy A71 ($550) was released in January of last year with its 5G version ($600) released in April 2020.  Samsung has announced this year’s 4G versions and one 5G version of those two popular Samsung phones, but there are some issues regarding when they will be released globally, with the A72 5G version rumored but officially unannounced.
 
Samsung is staggering the release of all A Series smartphones this year to maximize sales, some Samsung suppliers are indicating that a shortage of application processors designed by Qualcomm are causing delays in the release schedule for both the A52 and A72 smartphones.  Those application processors, while designed by Qualcomm, are actually produced by Samsung using an 8nm process.  Qualcomm’s CEO recently indicated he thought the semiconductor shortage would last through the end of this year and Samsung’s CEO stated that there was a serious imbalance in supply and demand of chips.  
 
Towards the end of April, Intel and TSMC the indicated that the global shortage of semiconductors might continue until 2023. This week, IMB President Jim Whitehurst reportedly confirmed this timeline, telling BBC News it would take time for the industry to add the necessary capacity to ease the current chip shortage.

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