Supply Chain Woes Hindering iPhone Production, Says QuickLogic CEO

Sales of QuickLogic’s display bridge products remain strong “as global supply chains remain challenged,” said CEO Brian Faith on an earnings call Tuesday for fiscal Q1 ended April 3. The company supplies field-programmable gate array chips for the iPhone that bridge mutually incompatible display interface standards embedded in the device. “These supply issues, while a negative for the industry, have been a positive for us as the constraints have created a worldwide shortage of certain display bridge semiconductor solutions,” said Faith. “One area where supply chain issues are slowing development and production is with our primary mobile phone customer.” Though QuickLogic continues to have new designs ready for market, “the supply disruptions are making it more difficult for our customer to build their product,” said the CEO. “This was reflected by lower shipments in the first quarter that we believe will persist in the second quarter.” Apple didn’t respond Wednesday to requests for comment. QuickLogic typically doesn’t experience “the same level of constraints” plaguing the “broader” semiconductor industry, said Faith. “Our sticking point is in the assembly and test part of the supply chain. Capacity is staying tight, and in order to get the access required, we continue to increase our committed inventory for finished goods to help ease supply concerns.”