Qualcomm is facing serious supply issues in recent times and the customer’s waiting list is growing fast, the increased demand for chips for various electronic devices as a result of the coronavirus pandemic ensures that Qualcomm can only deliver its chips with extreme waiting times. Now the US manufacturer is relying on “rush orders”.
As the Taiwanese industry service DigiTimes reports, Qualcomm has informed its customers, including practically all relevant smartphone manufacturers in the (Android) world, that it can take an extremely long time before the chips they have ordered can be delivered.
According to the details, customers sometimes have to wait 30 weeks or more for Qualcomm CPUs to be available. This equates to more than seven months, which is usually an extremely long time in the electronics world. The background is that Qualcomm’s manufacturing partners TSMC and Samsung are working to their capacity limits due to the high demand.
Speedy Delivery for TSMC’s premium customers
So that Qualcomm can continue to supply its most important customers with high-end processors for smartphones and other mobile devices, the US group is now relying on so-called “rush orders“. TSMC is said to have given Qualcomm the opportunity to prioritize certain chips and thus have them produced more quickly.
The corresponding deliveries should start before the middle of the year so that Qualcomm can serve its customers much earlier. TSMC apparently pays well for the prioritization of Qualcomm’s orders, after all, the world’s largest chip manufacturer has corresponding internal regulations that serve on the one hand to manufacture innovative products for certain customers, on the other hand, to maximize its income and to achieve long-term growth to back up.
Qualcomm, for its part, should benefit from the preference given by TSMC by being able to better supply customers such as Samsung, Oppo, Vivo, OnePlus, Sony and thus regaining market share that it has lost in recent months due to the shortages of competitors such as MediaTek.
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