Samsung says it might not be able to ship a Galaxy Note phone in 2021 because of a "serious imbalance" in the semiconductor industry.
Samsung sounded the alarm about a global semiconductor shortage during the company's annual shareholders meeting in Seoul - predicting that its business will be affected in the coming quarter. The possible delay or cancellation of a 2021 Galaxy Note seems to be separate. Samsung mobile chief Koh Dong-jin says it is more about streamlining the lineup, according to Bloomberg.
"There's a serious imbalance in supply and demand of chips in the IT sector globally," Koh, who is also joint chief executive officer, said. "Despite the difficult environment, our business leaders are meeting partners overseas to solve the problems. It's hard to say the shortage issue has been solved 100%."
Samsung, the world's largest smartphone maker, is coordinating with overseas partners to address the imbalance and avoid potential business setbacks, according to its Koh. On Wednesday its stock price dropped 0.6% in Seoul while suppliers and Asia chipmakers such as Taiwan Semiconductor Manufacturing Co. and SK Hynix also saw their shares fall in price.
Chipmakers such as Samsung and TSMC are at the forefront of a multinational movement to address a shortage of semiconductors, the building blocks of a wide range of consumer electronics.
The shortage has forced the closure of automobile plants all over the world, threatening the availability of other products. Although the Korea tech giant is the second-largest producer of made-to-order silicon after TSMC, it relies on third-party suppliers and manufacturers for certain components such as power management and radio chips.
Bloomberg reported shortages could be largely fixed in the coming months. However, there is concern that tight supply in some markets, such as more mature semiconductors where capability requires time to build, could ultimately suffocate the wider consumer electronics market and cause a spike in prices if it continues.
The release of a Galaxy Note this year was still a long shot. Samsung had suggested plans to add the key stylus feature to more Galaxy phones, stirring rumors that the line could be discontinued.
