Chinese chip manufacturing giant SMIC recently posted its earnings for the first quarter of 2022 which saw a whopping year-on-year increase of 62.6 percent. However, despite the company’s immense growth, SMIC is actually projecting a terrible year for smartphone sales worldwide, claiming that it will drop by some 200 million units.
SMIC Co-CEO, Zhao Haijun attributed this projection to the Ukraine war which has a significant impact on smartphone manufacturers. Sales in many regions are gravely affected, with Chinese smartphone brands likely to bear most of the loss.
As reported by IT Home, Zhaoi Haijun also revealed that the global chip shortage has also affected productions. In fact, chips used for power management, MCU, Wi-Fi and others are still in short supply today despite the Covid-19 pandemic not being as big of a factor than it was in 2020.
Hence, due to the factors mentioned, global smartphone sales are expected to have a sizeable decrease this year. Let’s hope that the overall manufacturing sector would recover and the chip shortage would be over soon.
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