Numerous companies are scrambling to secure their supply of memory chips. This comes after reports surfaced that a worldwide shortage of the DRAM and NAND chips is likely because Apple is hogging the supply for the production of the iPhone 8.
Apple is looked at as the main reason for the shortage of memory chips after it ramped up the component production for the Phone 8. An anonymous chip supplier has already stated that the upcoming iPhone is indeed the reason why there is a shortage of the said components. According to MacRumors, SK Hynix, a company that manufactures NAND chips, also shared that "supply conditions were tight" while its inventory of the chips is "at an all-time low." SK Hynix also stressed that it is unlikely that the inventory for the chips would go back to normal in the very near future. This has led some companies to order the chips in advance and secures their future.
LG Electronics, for one, has already placed its orders for the chips. According to the company, it has "pushed up quarterly purchase decisions by about a month" after it learned of the possible supply shortage. LG wanted to "ensure a stable supply" for its various smartphone and personal computer devices.
Huawei has already been forced to make use of "less advanced and powerful chips" for its P10 models. Nintendo, meanwhile, is also having difficulty procuring the components leading to a shortage of Switch consoles.
Smaller companies are likely to suffer the most because of the supply shortage. According to 9to5Mac, analysts are predicting that device makers will be forced to decrease the number of DRAM chips and NAND chips on new products. If a company fails to secure its supply, it will likely be forced to come up with a device that will have some difficulty performing multiple tasks at once and lack long-term data storage because of the lack of DRAM and NAND chips, respectively.
Apple itself had a little scare after reports surfaced that there was a problem with the supply of 10nm chips. TSMC assured Apple that the production of the 10nm chips was "totally on track" which gave Apple and fans of the iPhone a sigh of relief.