Why information technology matters: The global semiconductor shortage has hit the technology manufacture hard. To see merely what kind of measures companies are willing to take to accost the lack of chips available for their products, await no further than Samsung.

Co-ordinate to a report from The Elec, Samsung mobile chief TM Roh traveled to the U.S. in March and July in 2022 to find a solution for the shortage. He purportedly visited a "global application processor maker" that wasn't named to request an increase in chips simply was denied on both occasions.

The source added that the processor manufacturer stressed to the South Korean tech giant of its desire to increase supply but couldn't favour the request for Samsung alone.

Roh was reportedly accompanied past a vice president in charge of component purchases during the 2d trip in July. In a move that highlights but how dire the global fleck shortage has become, the president left the VP behind in the U.Due south. in gild to printing the matter further with suppliers and resolve the issue.


Samsung Mobile principal TM Roh. Prototype credit: Samsung

The vice president was obviously told not to return to South korea until a commitment for more chips was achieved merely ultimately returned 3 months later. A Samsung spokesperson stated that their trips were somewhat fruitful every bit it was able to secure "some" book to assistance production.

Roh also "harshly" reprimanded another senior vice president who also managed component purchases at Samsung Mobile.

Sources added that the company being refused was "highly unusual" because of Samsung's position as ane of the largest smartphone makers in the world. Ane of the reasons attributed to the weakened buying power was its increased reliance on original blueprint manufacturers in Mainland china, "as these companies procure components on their own, decreasing the Due south Korean company's total component purchases."

With the ability to obtain chips for its smartphones considerably impacted, information technology's no surprise there have been reports about Samsung either delaying or outright cancelling the Galaxy S21 Iron, which was due to be revealed during an October event. And information technology wouldn't just exist another Android phone to add together to the lineup -- a cheaper version of the popular S21 smartphone could accept been an enticing selection for consumers.

Elsewhere, Samsung is shut to finalizing the construction of a $17 billion semiconductor mill in Texas, according to Reuters. The 6-million-square-foot found is expected to be running past the cease of 2024.

Apple, meanwhile, by securing acceptable supply for chipsets ahead of time, has not experienced the same bug its competitors are currently battling. The lack of silicon, for example, has particularly affected the production of low-end Android phones, an of import segment of Samsung's business. Moreover, thank you to demand for the iPhone 13, suppliers are prioritizing the firm over others like Samsung.

The global chip shortage is non only affecting smartphone production; the automobile industry is expected to lose $210 billion in 2022, and prices for products similar GPUs continue to rise due to reduced availability. Come 2022, however, the semiconductor market shortage is expected to evidence signs of improvement -- AMD'southward CEO says the shortage should ease during the second half of 2022.