Chip shortages, which have become a global crisis, could also affect iPhone production as Samsung closes a plant where it makes chips for OLED displays used in iPhones.
The global chip crisis affecting the automotive industry is also threatening the PC and smartphone manufacturing industries. While the chip crisis will also affect some phone manufacturers, there is bad news for Apple about the Samsung OLED panels used in iPhones.
Samsung closes plant
Samsung’s chip manufacturing plant in Texas, which has been closed since February 16 due to major winter storms, accounts for 5% of the global chip supply for smartphones and personal computers. The closure of the plant has become one of the reasons for a widespread global chip crisis.
Samsung’s Texas plant makes chips for Qualcomm. The plant’s closure slows down Android phone production. According to the latest reports, the plant also makes chips for Samsung OLED displays that Apple uses on iPhones.
Apple could face cuts in production of iPhone models, where Smasung uses OLED panels. The company has its own production lines at chip factories thanks to deals with chipmakers, but Samsung’s closure of the plant will make Apple’s business difficult.