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Qualcomm facing Snapdragon chip shortage due to high demand

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Qualcomm has said that due to an increase in demand, it will not be able to keep production of its Snapdragon S4 chips high enough to meet it. It plans to use alternative chipsets and increase outsourcing through the end of the year.

Qualcomm MSM8960 Snapdragon S4
Qualcomm MSM8960 Snapdragon S4

Chip maker Qualcomm says that its supply of 28nm Snapdragon S4 chips isn't going to be able to keep up with demand until the end of the year. On its earnings call today, the company said that while it was working with manufacturers, it currently "cannot secure enough supply to meet the increasing demand" for the chips, which are widely used in smartphones.

In order to meet demand, Qualcomm said it was "looking at alternative chipsets, in particular our Fusion 2 lineup, which can be substituted in some cases." It's also hoping to outsource some production to other manufacturers. However, it admits that "we do expect to see some alternative non-Qualcomm chipsets being used" while it struggles to ramp up supply in time for the end of the year. Qualcomm's chips will still be used for high-end phones, while mid-range ones may end up with other suppliers. Consumers won't necessarily notice a difference, but it's an unusual change given how common Snapdragon chips are.

Thanks Minjin!