Samsung, like Apple, seeks new sources for chips as supply constraints hit the Korean manufacturer

Samsung, like Apple, seeks new sources for chips as supply constraints hit the Korean manufacturer
Apple isn't the only company that is looking to find a new company to provide it with chips. According to industry sources, the Korean based tech giant is unable to produce enough chips to meet the demand for the Galaxy line of smartphones and tablets. Samsung produces a large total of the DRAM and NAND flash chips around the world which means any chips diverted to Samsung's own production is going to be absent from the global market.

The sources say that they see Samsung continuing to buy chips from Japanese firms while in-house production goes straight to Galaxy smartphones or tablets. This means that the Japanese purchased parts are being sent out for non-Samsung devices. With the way that Samsung Galaxy models are selling, it sounds like Samsung will soon be needing additional chips which is why there is speculation the company will turn to Elpida Memory for mobile DRAM chips and Toshiba for eMMC devices.

Considering that this information is coming from those anonymous "industry sources" we suggest a little skepticism while you process this information.

source: DigiTimes

FEATURED VIDEO

18 Comments

1. Timmehor

Posts: 599; Member since: Mar 09, 2013

That was always going to happen. Samsung have bitten of more then they could chew, they will definetly need another manufacturer for their chips/hardware.

4. darkkjedii

Posts: 31529; Member since: Feb 05, 2011

I guarantee you that red thumb, and anymore you get came from someone who's religion is samsungyanity, or samslam.

22. Timmehor

Posts: 599; Member since: Mar 09, 2013

Lol, probably. I was just saying. Samsung have huge demand for their phones, and they aren't producing enough, especially the Exynos.

23. darkkjedii

Posts: 31529; Member since: Feb 05, 2011

U know if your post isn't absolutely 100% pro Sammy/google and 1,000,000,000,000,000% anti apple/iOS/iPhone/iPad/iPod/iPad mini/Mac/jobs/cook/a5/a5x/a6/a6x/a7/darkkjedii they'll thumb you down bro.

24. Ninetysix

Posts: 2965; Member since: Oct 08, 2012

I would agree with you if they were shipping the Exynos version to all countries. Right now they're using the Snapdragon chipset to 70% of the initial shipment of the S4. Fail...

29. Nathan_ingx

Posts: 4769; Member since: Mar 07, 2012

Yes, that's true...mostly Snapdragon it is. But Samsung won't go search for sources unless they're running out on the Exynos. It's not the Snapdragon that's running out, it's the Exynos irrespective of where it's available and where not.

2. jcpwn2004

Posts: 314; Member since: Jan 18, 2012

i guess it's a good problem to have, as long as the gs4 launch isn't delayed!

25. cheetah2k

Posts: 2290; Member since: Jan 16, 2011

"Considering that this information is coming from those anonymous "industry sources" we suggest a little skepticism while you process this information." Sounds like every single PA article ever written...... LOL

3. darkkjedii

Posts: 31529; Member since: Feb 05, 2011

What!!! No way!!! Not Sammy, Sammy is all powerful, innocent, doesn't want a profit for their devices, never ever sues anyone, and couldn't possibly have supply problems. I mean c'mon there's simply no way Sammy could have issues that plague all electronics companies at one time, or another. Then I woke up...

9. Apartments

Posts: 17; Member since: Jun 21, 2012

It'll be ok...Samsung just keep giving us great phones and features unlike other manufacturers who keeps making the same ol boring phone

14. darkkjedii

Posts: 31529; Member since: Feb 05, 2011

As long as Sammy has a chip for my frost white s4, it's all good

31. iushnt

Posts: 3141; Member since: Feb 06, 2013

Are you getting the exynos one or the snapdragon?

21. zekes

Posts: 230; Member since: Aug 14, 2012

copying to the max

34. chocolaking

Posts: 495; Member since: May 22, 2012

Exactly !!! Could just call them the King of pirating..

26. Note2waitingonNote3

Posts: 87; Member since: Mar 19, 2013

Samsung will be just fine. They know what they are doing...

27. Taters

Posts: 6474; Member since: Jan 28, 2013

No surprise. They can't make enough Exynos chips for the GS3 or GS4 and are opening up another huge facility.

28. xperiaDROID

Posts: 5629; Member since: Mar 08, 2013

Yeah, no worries! It's just a shortage of chips, they have so much "power", they're not going down, so no need to worry about that! :)

33. VZWuser76

Posts: 4974; Member since: Mar 04, 2010

It's not really any different than the oled shortage in 2010. Not only was Samsung supplying amoled screens for their own stuff, but also for phones like HTC's original Incredible. That was one of the main reasons for low sales on it. You had to wait 2 weeks to a month for them to get back in stock. Eventually HTC switched to LCD screens so they could keep selling them. While there's nothing wrong with making a little money on the side, a company's first responsibility is itself. Make sure they have enough materials for themselves before trying to sell them to competitors.

Latest Stories

This copy is for your personal, non-commercial use only. You can order presentation-ready copies for distribution to your colleagues, clients or customers at https://www.parsintl.com/phonearena or use the Reprints & Permissions tool that appears at the bottom of each web page. Visit https://www.parsintl.com/ for samples and additional information.