Samsung halts production of new phone on chip shortage

Samsung Electronics Co. has suspended production of one of its mid-range phones because of a chip shortage, South Korea’s Electronic Times reported, in the latest sign of global semiconductor supply problems.

The suspension of the Galaxy S21 Fan Edition was due to a shortage of Qualcomm’s application processors, the report said Sunday, citing an unidentified person in the industry. Samsung had aimed to launch the less expensive version of the Galaxy S21 in August, according to the report. A company spokesperson declined to comment.

Samsung has warned it’s grappling with the fallout of a “serious imbalance” in semiconductor supply globally. Samsung might suspend the launch of S21 FE phone model given the chip shortage may not be resolved soon, the report said.