According to co-CEO Koh Dong-jin, Samsung continues to feel the effects of the global microchip shortage.
At Samsung’s annual meeting in Seoul, Koh cited the “severe imbalance between supply and demand for chips in the computing industry globally” as a potentially major issue for Samsung in 2021, according to Bloomberg. The chip shortage has taken its toll around the world, from the production of cars to the production of video game consoles.
Samsung is expected to announce and launch two major smartphones in 2021: the annual updates to the flagship Galaxy and Galaxy Note smartphones.
Although Samsung makes its own chips, the company’s smartphones depend on third-party components, such as processors from Qualcomm.
However, Apple is producing its own processor for the iPhone, which allows the company to bypass some of the supply issues facing electronics manufacturers in 2021.
The problem of the processor shortage “affects everyone except Apple,” said MS Hwang, an analyst at Samsung Securities.
Additionally, Apple’s main production partner in China has reassured customers that the chip shortage will not have much of an impact on production.
“Since most of the customers we serve are large customers, they all have proper precautionary planning,” Liu Young-way, president of Hon Hai Precision Industry, said in February, according to Reuters. “Therefore, the impact on these big customers is there, but limited.”