Qualcomm struggles to meet chip demand as shortage spreads to phones: Sources

SAN FRANCISCO/SHANGHAI: Qualcomm Inc is struggling to keep up with demand for its processor chips used in smartphones and gadgets, as a chip shortage that first hit the auto industry spreads across the electronics business, industry sources told Reuters.

Samsung Electronics Co Ltd, the world’s largest smartphone maker, is experiencing a shortage of Qualcomm’s application processors, the heart of smartphones, two people at suppliers for the South Korean giant told Reuters.

Demand for Qualcomm’s chips has soared in the past months as Android phone makers seek to win over customers abandoning phones produced by Huawei Technologies Co Ltd due to U.S. sanctions. Qualcomm has found it hard to meet this higher-than-expected demand, in part due to a shortage of some subcomponents used in its chips.