Samsung’s Demands For More Phone Chips Reportedly Rejected By U.S. Suppliers
With this in mind, the company is doing everything to bolster its chip supply, including sending mobile chief TM Roh to the United States to implore suppliers to boost output. However, even a company as big as Samsung, which has considerable political and financial might, couldn’t move the production needle, according to South Korean publication The Elec.
Roh reportedly made two trips to the U.S. – one in March and another in July – to visit an unnamed “global application processor maker.” According to the publication, Roh was flatly denied. The chip supplier reportedly told the exec that as much as they would like to increase capacity to deliver more chips, it couldn’t justify the move for Samsung alone.
The Elec added a bit more color to the serious situation for Samsung, reporting that a [mobile] vice president who joined Roh during his second visit was left behind in the U.S. The VP was told not to return to South Korea until the supply issue was resolved but eventually returned months later empty-handed.
In addition, a senior VP for component purchases was also reportedly raked over the coals due to Samsung’s precarious position. While we can understand Roh’s frustration that his procurement chief couldn’t “get the job done,” the global chip shortage is devastating many companies, not just Samsung.
It was recently reported that Samsung canceled the Galaxy S21 FE, which was supposed to launch at an October “Unpacked” event. It very well could be that Samsung couldn’t secure enough chips to make the Galaxy S21 FE’s launch feasible and was forced to bail. Introducing a cost-reduced version of its flagship smartphone during a global chip shortage isn’t the best business move, so the cancellation does make sense. However, it is mere speculation at this point, and Samsung hasn’t officially confirmed the move.