Inyup Kang, a former Qualcomm executive and now head of Samsungs logic chip developer System LSI, said the company is talking to all OEMs. In fact, a Samsung ZTE deal will put more pressure Qualcomm, which said last month it expects the loss of business with ZTE to lower its profits by 3 cents per share next quarter, reported Reuters.
Samsung in talks with ZTE, others to supply mobile processor chips: executive
It hasn't been confirmed which OEMs are now in Samsung's sights, but given ZTE's recent debacle leaving the company on the verge of shutting down, the Chinese manufacturer could very well be roped into the discussion. Especially ones that come from a long time American ally like South Korea. This will lead to more direct competition with Qualcomm. It looks as though Samsung is attempting to capitalise on ZTE's struggles with the USA government, which now prevents the smartphone maker from using Qualcomm's chips.
According to Reuters, Samsung is only in talks with ZTE at this moment for supply of its Exynos chipsets. Notably, the company's System LSI business increased its shipments by 27 percent, Counterpoint stated. Samsung generates most of its profits from its memory chips, and the report notes that it has been ramping up development of logic chips such as mobile processors, image sensors and automotive chips in a diversification attempt. In January, the company announced that it is providing Audi with Exynos chips.More news: SEC Office of Investor Education Creates Mock Initial Coin Offering "HoweyCoins.com"
Now ZTE's core business operations have been shut down post this ban and the company is looking for ways to widen its supply chain and is in talks with several companies including Samsung for supplying microprocessors.
TSMC is the world's top contract chip manufacturer, followed by the likes of USA -based Global Foundries, Taiwan-based UMC and Samsung.More news: White House may address violence around opening of US Embassy in Jerusalem
Out of this semiconductor business, memory chips contributed about 96 percent of the profits as it rode a "boom" cycle, while System LSI and foundry took up the rest with about 1.44 trillion won in 2017 operating profits, according to data from Mirae Asset Daewoo Securities. He declined to provide last year's growth rate.More news: Gianluigi Buffon to leave Juventus; reveals offers that may hold off retirement