If restoration of the Austin plant is delayed, smartphone chip production will also be disrupted.
Produced Samsung flagship smartphone chips such as the Galaxy S21 for sale in the Americas
Apple’s iPhone OLED panel driver IC is also produced by Austin
It is highly likely that Samsung Electronics and Apple smartphone production will be affected by the shutdown of Samsung Electronics’ semiconductor plant in Austin, Texas, USA. The Austin plant, which was shut down due to a cold wave last month, produces chips for smartphones from two companies.
According to the industry on the 9th, the delay in normal operation of the Austin plant is likely to affect the production of Samsung Electronics’ flagship smartphones such as the Galaxy S21 series and Apple’s organic light-emitting diode (OLED) iPhone.
At the Austin plant, it was found that Samsung Electronics is producing chips for flagship smartphones sold in the continental Americas (North and South America). This factory also makes a display driver IC (DDI), a chip required to drive the OLED panel of Apple’s iPhone. The production capacity here is known to be 20,000 wafers per month.
Since Samsung Electronics usually stocks parts for about half a month, there will not be a shortage of chips right away, but if the Austin plant is delayed, the production of finished products may be disrupted. The industry believes it will take two months to normalize the Austin plant. In the middle of next month, concerns may materialize.
The Galaxy S21 series, which aims to recover its honor due to sluggish sales last year, also came into the sphere of influence. In the parts industry, the annual shipment of the Galaxy S21 series is expected to be around 30 million units, 15% more than the previous version. The estimate is based on the trend that Samsung Electronics ordered 10 to 11 million parts for the Galaxy S21 series from the end of last November to mid last month to partners, and ordered 3 million parts per month this month. However, if the chip supply shortage becomes a reality, the shipments of the Galaxy S21 series could only be in the late 20 million units.
The shutdown of the Austin plant puts Samsung Electronics a burden on stably securing chips in addition to product marketing to increase consumer demand. Samsung Electronics missed the right time to sell due to a shortage of parts for the top model (ultra) of the Galaxy S20 series last year.
Some people predict that Samsung Electronics’ semiconductor division will secure additional chip production lines for the Galaxy S21 series in consideration of the symbolism of the Galaxy S series, but it is changing production lines for the Galaxy S21 series in a situation where system semiconductor production capacity is insufficient worldwide. Some objections come out that it will not be easy.
Apple receives the DDI required for the iPhone OLED panel from the Austin plant. If the plant shutdown is prolonged, OLED iPhone production could also be disrupted. Apple is expanding its market share in the premium phone market with sales exceeding expectations for the iPhone 12 series, which was released in the second half of last year.
Meanwhile, Samsung Electronics is reportedly conservatively setting an estimate of the Galaxy S21 series shipments (26 million units) this year due to extremely sluggish sales of the Galaxy S20 series last year. The current industry forecast of the Galaxy S21 series shipments (30 million units) is 15% higher than the previous Galaxy 20 series shipments, but far less than the previous year’s shipments of the Galaxy S series, which were in the mid-30 million units.
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