In a recent press release, analyst firm TrendForce has revealed that the smartphone market will see a 5 percent drop in the second quarter due to the winter storm that hit Samsung’s factory back in mid-February. Samsung’s Austin factory is responsible for manufacturing smartphone components and some of the most important smartphone components affected by the storm include Qualcomm 5G RFIC, Samsung’s LSI OLED DDIC and its LSI CIS Logic IC.
According to the analysts, Samsung managed to prepare for the interruption after the company was warned about the weather. However, the company is still recovering from the disaster and until the company resumes full-operation, smartphone production around the world will slow down.
In case you didn’t know, the Qualcomm RFIC is shipped to clients for use in 5G handsets but the delays mean that 5G smartphone production in 2Q21 could drop by a huge 30%. In order to combat the shortage, smartphone manufacturers are looking to increase the production of 4G smartphones to combat the shortage of 5G devices. On the other hand, Samsung is planning on prioritizing production of the company’s production of RF products to help the manufacturers.
Despite the prediction, TrendForce has said that manufacturers around the world will still produce 1.36 billion smartphones this year. Due to the shortage of different components in the second quarter, the firm expects the shortage will only affect the production of 5G smartphones as it now expects the 5G productions to reach 36.5% rather than 38% as previously predicted.
This prediction comes shortly after the analyst firm said that SSD production is also to be impacted by the natural disaster.