Qualcomm Warning Shows Semiconductor Shortages Are Spreading
Bloomberg 2/4/2021 Ian King
(Bloomberg) Qualcomm Inc., the world’s largest smartphone chipmaker, warned it is struggling to meet demand, signaling that a global semiconductor shortage is spreading.
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“The shortage in the semiconductor industry is across the board,” said incoming Chief Executive Officer Cristiano Amon.
Like most chipmakers, Qualcomm outsources production to companies such as Taiwan Semiconductor Manufacturing Co. and Samsung Electronics Co. These suppliers are trying and so far failing to adjust to a vigorous rebound in demand. The auto sector has complained about this recently, but Qualcomm’s comments show the problems are broader.
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Qualcomm shares drop as chip supply constraints hold back sales
A sign on the Qualcomm campus is seen in San Diego, California, on Nov 6, 2017. REUTERS/Mike Blake)
04 Feb 2021 05:05AM (Updated:
04 Feb 2021 06:25AM) Share this content
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REUTERS: Qualcomm Inc shares dipped as much as 9per cent in after-hours trading on Wednesday as the company said that semiconductor supply constraints that have roiled the industry contributed to fiscal first-quarter sales that slightly missed Wall Street expectations.
The results come as chip shortages force automakers such as General Motors Co on Wednesday to cut production at multiple plants. While Qualcomm does not make the chips that are holding up automotive plants, the company works with some of the same chip contract manufacturers that are backed up, and Qualcomm executives told Reuters tha
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Qualcomm suffered an after-hours share drop on Wednesday after missing Wall Street s sales expectations, albeit not by much.
Analysts had hoped for more from Qualcomm’s fiscal Q1 2021 figures, published earlier in the day, in large part because mobile hardware rival Huawei has been hampered by the Trump Administration on US national security grounds. But while Qualcomm did benefit, it wasn’t by as much as investors hoped.
Revenues for the three months to December 27 were up a very healthy 62 per cent to $8.24bn, and net income rose 165 per cent over the year to $2.46bn. But that first-fiscal-quarter revenue was ever-so-slightly lower than estimates of $8.27bn, and that helped push shares down in after-hours trading – at one point by nine percent, and ultimately by a little over six per cent.
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