Recently, it was reported that Samsung is facing production delays dues to chips shortage but Apple was impacted by the shortage. However, the situation has changed for Apple as well. It is now reported that iPhone 12 production will likely get affected by the global silicon shortage as well.
Previously it was speculated that Apple will not face any production hiccups due to the current chip shortage because TSMC designs and produced A-series chips used in the new iPhone 12 series, unlike Andriod smartphones companies which rely on Qualcomm, Samsung, and others for processors. Secondly, the Cupertino tech giant orders components in advance.
Closure of Samsung’s plant in Texas will impact iPhone 12 production
9to5Mac reports that iPhone 12 production will be indirectly affected by the closure of Samsung’s plant in Texas, the U.S which is responsible for 5% of global chip supply. The production facility has been shut for 5 months now, after an unexpectedly harsh winter storm in the state.
The shortage spurred by strong chip demand during the pandemic has been exacerbated by the shutdown of a Samsung plant in Texas following a winter storm. The chip fabrication plant responsible for 5% of global supply has been idled since Feb. 16, causing widespread repercussions through the supply chain.
“There’s a serious imbalance in supply and demand of chips in the IT sector globally,” Koh Dong-Jin, the co-CEO who oversees Samsung’s mobile division, said Wednesday at a shareholders’ meeting.
As Samsung manufactured OLED display used in iPhone 12 and Apple Watch models at Texas facility, the plant’s closure could impact Apple.
The facility also produces chips for organic light-emitting diode panels and for image sensors. The supply crunch hitting Qualcomm will affect a wide range of smartphone makers that rely on the company for key components. Apple, which procures OLED panels from Samsung, could also face disruptions in iPhone production.