Galaxy Z Fold8 is selling better than Samsung can produce it. Due to demand, it reportedly used parts intended for next year's models

The new foldable Galaxy Z Fold8 has become an unexpected hit for Samsung – and that’s exactly what’s causing the company a bit of a headache now. According to information from Korea, demand has outpaced production to such an extent that the manufacturer decided to tap into the production capacity it had originally reserved for phones planned for next year.

The high demand for the foldable with its new, horizontally opening body became apparent right after sales began. Samsung was then dealing with delivery delays and, according to earlier reports, wanted to produce up to a million more units than originally planned – and as we wrote, the new device immediately became a hit in the Czech Republic as well. Now, ZDNet Korea has reported on where the biggest production bottleneck lies.

Why did display chip production get stuck?

The snag is called DDI, or display driver – a small chip that controls what is displayed on the flexible panel. It is manufactured by the Taiwanese foundry UMC using a 22-nanometer process, and according to industry sources, its production line is at its capacity limit. Samsung reportedly requested a so-called “super hot run”, meaning express order processing, but the factory reportedly replied that it couldn’t go any faster.

Why this particular component? LPDDR memories are universal, so if there aren’t enough for one model, the manufacturer can easily use a batch allocated for another phone. However, DDI is custom-made for a specific model – a different foldable, a different chip – and switching production between phones is not that simple. Add to that the fact that a complete chip takes about four months to produce from a silicon wafer, so a shortage cannot be made up overnight.

What does this mean for Galaxy Z Fold8 production?

The solution the manufacturer reportedly adopted is pragmatic but unusual: it will redirect the capacity for driver production, which it had reserved for models planned for next year, to the current Galaxy Z Fold8. This doesn’t mean literally pulling finished parts from future phones – those are yet to be manufactured. However, today’s hit will take priority, and the development of future models will have to wait for its allocation.

Galaxy Z Fold8 is selling better than Samsung can produce it. Due to demand, it reportedly used parts intended for next year's models Adam Kurfürst News Adam Kurfürst News

In addition to chips, Samsung is reportedly also ordering other essential components for the foldable – hinges and ultra-thin glass (UTG). Interestingly, there’s a contrast within the family: while demand for the Fold8 is exceeding expectations, the clamshell Galaxy Z Flip8 is reportedly selling worse than the company anticipated.

Foldables are, in any case, driving the entire market upwards. Analysts from Omdia estimate that shipments of flexible phones will double to approximately 36 million units annually by 2028. Furthermore, Apple is entering the same category this year with its own horizontally folding device, so the fight for production capacities is unlikely to subside anytime soon.

Would you go for the foldable Galaxy Z Fold8, or wait for the next generation?

Sources: ZDNet Korea, 9to5Google