Chip shortage spreads to smartphones

The global chip shortage could be spreading from cars to smartphones.

Reuters sources say Qualcomm is struggling to meet demand for semiconductors used in handsets and other gadgets.

Key client Samsung reportedly can't get enough chips from the U.S. manufacturer.

Demand for Qualcomm processors has soared in recent months.

That as Android phone makers battle to win over customers abandoning Huawei, which is beset by U.S. sanctions.

But Qualcomm has reportedly struggled to meet demand, itself facing a shortage of some components.

One source at a Samsung supplier said the silicon drought was now hitting output of low- and mid-range phones.

Another said Qualcomm's flagship chips were also running short, potentially hitting high-end handsets.

One source at a major contract manufacturer for several brands said it would have to cut output later in the year.

A spokesman for the U.S. chipmaker would only reiterate the company's comments earlier in the week, pledging to hit sales targets.

The chip shortage first showed up in the car industry.

Many major automakers have been forced to halt or slow production due to a lack of semiconductors.

The shortage has prompted panic buying of chips, further squeezing supply and prices.