Shockwave from Semiconductor Chip Shortage Affects Apple and Samsung Electronics... Production Disruptions Expected

[Image source=Yonhap News]

[Asia Economy Reporter Kim Bo-kyung] The semiconductor chip shortage, which has caused production halts at automobile manufacturers, shows little sign of easing and has emerged as a factor disrupting production at Apple and Samsung Electronics as well.

According to Bloomberg News and the US CNBC on the 28th (local time), Apple raised concerns during its conference call announcing first-quarter earnings with a 54% sales growth this year, stating that the semiconductor shortage could negatively impact the second quarter.

Apple said that semiconductor chip supply constraints would particularly affect iPads and Mac computers, estimating that the resulting disruption in second-quarter sales could reach $3 billion to $4 billion (approximately 3.3 trillion to 4.4 trillion KRW).

CEO Tim Cook mentioned a shortage of chips based on the somewhat older manufacturing method called 'legacy node,' but did not specify which components are experiencing supply disruptions.

[Image source=Yonhap News]

Along with the semiconductor chip shortage, Apple pointed to the surge in demand following the spread of remote work after COVID-19 as another cause of supply disruptions. In fact, recent quarterly sales of iPads and Mac computers increased by 79% and 70%, respectively.

Bloomberg reported that although Apple has not been significantly affected by the shortage of semiconductor components so far, the fact that the newly released iMac model and iPad Pro are not shipping until May is an unusual delay.

Samsung Electronics also stated during its conference call following the announcement of first-quarter earnings on the 29th (Korean time) that recent global semiconductor supply shortages have caused some disruptions in set and display production (including mobile and home appliances).

Seo Byung-hoon, Vice President in charge of IR at Samsung Electronics, said, "We are making efforts on multiple fronts to minimize the impact of semiconductor supply shortages," adding, "For set products such as smartphones, TVs, and home appliances, we are closely cooperating with key suppliers to secure necessary component inventories."