Samsung says auto chip shortage could hit smartphones

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Samsung Electronics said a global semiconductor shortage that has hit global carmakers could also disrupt orders for the memory chips used in smartphones, as manufacturers rushed to respond to the crisis.

The warning from the world’s biggest memory chipmaker comes as companies and governments grow concerned that constrained chip manufacturing capacity could derail countries’ economic recoveries from the coronavirus pandemic.

The rush by semiconductor foundries to meet demand for auto chips means many are now operating at full capacity, limiting their ability to take on new orders, which could in turn slow deliveries of chips designed for mobile devices.