Qualcomm shares drop as chip supply constraints hold back sales

Qualcomm Inc shares fell 7.6% in after-hours trading on Wednesday as the company said that semiconductor supply constraints that have roiled the industry were hampering its sales growth.

The results come as chip shortages force automakers such as General Motors Co on Wednesday to cut production at multiple plants. While Qualcomm does not make the chips that are holding up automotive plants, the company works with some of the same chip contract manufacturers that are backed up. Qualcomm executives told Reuters that supplies will remain tight through the first half of 2021 without detailing the supply issue.

“If we could make more, we could sell it,” Chief Executive Steve Mollenkopf told Reuters in an interview.