Slow Chipset Supply, Samsung and Apple Cut Smartphone Production by Tens of Millions
5/30/2022
Previously, there was also a covid pandemic that made the supply of chips or semiconductors scarce until now.
These semiconductors are used in almost all technology products, from automotive, digital equipment, to gadgets and drones.
Now the semiconductor crisis occurs due to the lockdown in China as a production center and the war between Russia and Ukraine.
crisis chipset has also forced smartphone manufacturers to cut their production.
Now Samsung has reportedly reduced its production by 30 percent by the end of this year, which was forced to do so due to a shortage of chipsets for its smartphones.
This production cut reduces Samsung's smartphone production to 280 million units.
This figure dropped dramatically from the initial prediction which originally planned to produce 310 million mobile phones.
Fortunately, Samsung's smartphone shipments in the global market in the first quarter of 2022 remained high, reaching 73.7 million units.
Now Samsung is doing various ways to increase production without importing chipsets from Beijing.
One of them is by releasing semiconductor and biopharmaceutical products.
Samsung is seriously working on this project and has spent up to 450 trillion won or around (Rp 5200 trillion) for 5 years, until 2026.
Compared to the previous period, Samsung's investment has increased by about 30 percent.
However, according to Samsung, this method can break Samsung's dependence on imported chipsets and encourage production growth in the next few years.
Even Apple is doing the same thing, by cutting production of 20 million smartphones in 2022, as reported by Techcrunch.
The production cuts were made so that the stock chipset could be used by Apple to release its newest product, the iPhone 14, which fans had been waiting for.
