Qualcomm Snapdragon chip shortage due to high demand

20 Apr 2012

Major mobile phone chip manufacturer Qualcomm has said it can’t meet the demand for some of its Snapdragon processors which may cause Android and Windows Phone makers to seek alternatives.

According to the BBC, Qualcomm told investors that third-party manufacturers building 28 nanometre chips will not be able to create enough of them until the end of the year.

Qualcomm underestimated the demand for its S4 Snapdragon processors and said the firm is trying to push its other products, such as its Fusion 2 chipset. The company is also looking to outsource production to other manufacturers.

However, it understands this could mean that Android and Windows Phone manufacturers may need to source chips from Qualcomm’s rivals for upcoming phones.

The news saw its shares fall by more than 7pc before making a partial recovery.