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Memory Chip Drought Worsens

Memory Chip Drought Worsens

Apple’s new iPhone 8 launch, due later this year, is threatening to exacerbate the current shortage of memory chips which may last until well into next year.

While Apple and Samsung Electronics, which makes memory chips as well as smartphones and devices, won’t be affected, other companies are scrambling to shore up supplies.

Analysts say that some electronics makers are currently paying a hefty premium to lock in long term contracts.

LG Electronics confirmed it had brought forward its procurement orders to ensure a stable supply.

One chip supplier said the problem will be most acute for the NAND market, where the iPhone remains a critical source of demand. Apple buys about 18 percent of the global annual supply of NAND chips.



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