Chinese phone makers downplay impact of tight chip supply

March 01, 2021 ideaTechX

Despite media reports of extreme shortages of mobile phone chips, two Chinese phone makers said on March 1 that they are not currently experiencing shortages of the core component.


Local media The Economic Observer quoted a mobile phone chip industry source as saying that there is no extreme shortage of mobile phone chips, and there is no risk that the chips will cause mobile phones to run out of stock.


OPPO said the current upstream of the industry chain does have some tightness in chip production capacity and related raw material supply, but the supply of chips can guarantee OPPO mobile phone production capacity, according to the report.


The report cited a source close to another Chinese phone maker as saying that there is currently no extreme shortage of high-end mobile phone chips, including Qualcomm’s Snapdragon 888, and the company is still producing normally as planned.


Qualcomm’s high-end mobile phone chips are in short supply in the first quarter of every year, and this year’s market is no exception, he said.


At present, whether it is the main chip of the phone, or RF, power, Bluetooth, and other chips used within the phone, there is a certain degree of capacity shortage as well as price increases. However, there will not be a risk of mobile phones out of stock due to the chip, the report quoted another mobile phone chip industry source as saying.


Mobile phone supply chain sources said Qualcomm’s full range of materials delivery period extended to more than 30 weeks, CSR Bluetooth audio chip delivery cycle has reached more than 33 weeks, according to Yicai.com report on Monday.


Mobile phone manufacturers including Huawei, OPPO, Vivo, and OnePlus are increasing the number of mobile phone products in stock, which makes the imbalance between supply and demand for chips even more serious, the report said.


Lu Weibing, Xiaomi’s vice president and president of China, said on Weibo on February 24, “This year, there is a huge shortage of chips. It’s not only a shortage but an extreme one.”


Chinese smartphone makers plagued by chip supply shortage



Chinese phone makers downplay impact of tight chip supply-CnTechPost


Chinese phone makers downplay impact of tight chip supply-CnTechPost