Electronics giant Samsung expects the continuing global shortage of semiconductors to impact on its production as it tries to manage what it describes as a “serious imbalance” in global supply.

The company’s joint CEO, Koh Dong-Jin, told shareholders at its annual shareholders meeting in Seoul that the supply problem is likely to affect Q2 performance for the business. It has also played a part in the manufacturer’s decision to skip the expected introduction of a new Galaxy Note smartphone this year, although it expects to restore its plans for new product launches next year.

The chip shortage has already significantly affected the automotive sector, with Toyota, Honda and Volkswagen among the manufacturers hit. Samsung said it is working with overseas partners to meet demand and help address a problem that has so far impacted on production capacity for a wide range of electronic items over the past year. Shortages are expected to continue in to 2022.

Global demand for semiconductors has been on a steady rise, boosted in part by strong sales of PCs, smartphones and games consoles. Increased home-working has also seen demand for technology at home rise substantially over the past year.

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