While news from Nikkei Asia suggests that the tech giant has decided to cut or delay orders from various suppliers, the recession in the global economy seems to have caught Samsung’s suppliers as well. According to the report, Samsung has informed suppliers in various product lines that it will suspend orders for certain components and parts for several weeks while assessing the level of parts and finished product inventory.

Additionally, Samsung has said it will cut component orders to other vendors as it fights “rising inventories and global inflation.”

This news comes shortly after previous reports that Samsung is reducing its smartphone production schedule for this year. The South Korean technology company has announced to its suppliers that it will reduce orders by mid-2022. That means Samsung only plans to ship 280 million devices this year, compared to its original target of 310 million.

Nikkei also said that Samsung has cut orders for TVs, home appliances and smartphones. Meanwhile, these delays will affect processor components, electronic components and end product packaging. A vendor is expected to reduce scheduled deliveries to Samsung by 50% in July.

Given soaring global inflation, Samsung’s latest move should come as no surprise. Companies such as Xiaomi, Vivo and Oppo also cut production. We recently reported that Samsung can kill Fan Edition phones and that might be the reason. Source