As phone makers battle with the difficulty of higher smartphone production costs, the economic impact of the worldwide chip shortage, which has continued for several months since 2020, could soon be felt directly by phone consumers. At first, the chip scarcity mostly impacted the automobile industry.
Xiaomi’s president, Wang Xiang, claimed his business has been dealing with higher production costs as a result of a lack of semiconductors for smartphones. The additional production costs were almost certain to result in higher prices for several of the company’s next devices.
Some chipmakers have declared capacity expansion plans, but due to the complicated and complex procedures involved in chip fabrication, the influence on global chip supply may not be visible for another two years.
