Samsung Electronics is in talks with numerous smartphone makers together with China’s ZTE to deliver cellular processor chips, a senior government said, a flow as a way to deliver it in more direct competition with larger rival Qualcomm.
The South Korean tech giant generates the majority of its making the most of its bread and butter reminiscence chips and has been beefing up improvement of good judgment chips such as mobile processors, image sensors and automotive chips to diversify.
It’s flagship Exynos cellular chips power Samsung’s Galaxy line of smartphones, however, the chipset has best one outside cellphone patron – China’s Meizu Technology.
“We are speaking to all OEMs,” Inyup Kang, head of Samsung’s logic chip developer known as System LSI, advised Reuters in an interview, relating to authentic system manufacturers.
Kang, a former Qualcomm executive, said he expects to announce a new patron for its Exynos chipsets within the first 1/2 of 2019.
Its look for new customers for the Exynos chips comes as the United States banned its businesses from selling components to China’s ZTE for seven years after it violated the terms of a settlement deal for illegally transporting goods made with U.S. Components to Iran and North Korea.
That has created urgency for ZTE to diversify its suppliers, analysts said, although attempts to remedy the difficulty have picked up a few paces after US President Donald Trump pledged on Sunday to help ZTE “get lower back into a commercial enterprise, speedy”.
Regardless of US-China trade talks, Kang stated Samsung will continue discussions with ZTE.
It’s efforts like as a way to put similarly strain at the enterprise chief Qualcomm, which said last month it expects the loss of business with ZTE to decrease its income through three cents in keeping with proportion subsequent region.
Samsung is ranked some distance at the back of competitors Qualcomm and Apple in mobile processing chips, but the use of Exynos chips through its personal phone commercial enterprise helped it come to be the quickest developing player within the phase, in accordance to research firm Counterpoint.
Samsung’s System LSI commercial enterprise saw a 27 percentage upward push in shipments the last yr, Counterpoint says.
Qualcomm additionally faces competition from Chinese groups consisting of Huawei Technologies, which makes use of its own processing chips called HiSilicon in its flagship smartphones.
Chips for vehicles
As the phone marketplace slows, Samsung’s good judgment chip division also plans to are looking for an increase in new fields which includes fifth-generation cell network era (5G) and automotive, Kang said.
He stated Samsung is in dialogue with more than one automobile agencies to expand chips for self-sufficient riding, declining to name the automobile makers. It said in January that it’s far providing automaker Audi with Exynos processor chips.
System LSI nevertheless makes use of Samsung’s foundry for all of its manufacturing needs, but is in talks with other settlement producers to diversify manufacturing in areas Samsung’s foundry isn’t always prepared for but, along with excessive-voltage automotive merchandise, Kang stated.
TSMC is the sector’s top contract chip manufacturer, observed by the likes of U.S.-based totally Global Foundries, Taiwan-based UMC and Samsung.
Samsung’s semiconductor business, reporting a 2017 running profit of KRW 35.2 trillion ($33 billion), contributed greater than 65 percent of the complete company’s document annual income of KRW fifty-three.65 trillion final yr.
Out of this semiconductor enterprise, reminiscence chips contributed approximately 96 percent of the income because it rode a “boom” cycle, whilst System LSI and foundry took up the relaxation with about KRW 1.44 trillion in 2017 working profits, according to statistics from Mirae Asset Daewoo Securities.
Kang stated his commercial enterprise is predicted to see a 5-10 percent revenue boom this year in dollar terms. He declined to provide ultimate year’s increase rate.