According to people familiar with the matter, Samsung ElectronicsProduction of a mid-range smartphone has been suspended because of chip shortages, in the latest sign of semiconductor supply problems.

Samsung suspended production of the Galaxy S21 FE (Fan Edition) because of Qualcomm, according to industry insidersThere is a shortage of application processors. The company had planned to launch the lower-priced Galaxy S21 in August. A Samsung spokesman declined to comment.

Samsung had previously warned that it was grappling with the consequences of a "serious imbalance" in the global supply of semiconductors. Samsung may suspend the release of the S21 FE phone model, given that the chip shortage may not be resolved soon, according to people familiar with the matter.