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Samsung appears to be winning major chip manufacturing contracts in recent months. While it has yet to win back Apple’s contracts, Samsung’s chip-making arm has closed the deal to make Qualcomm’s Snapdragon 750 processor. The next chipset is expected to be used in premium mid-range smartphones.
According to a report from South Korea, Samsung Foundry will make Snapdragon 750 chipsets using its 8nm FinFET process. However, the value of the deal is not yet known. The next 5G chipset will reportedly be used in the Galaxy A42 5G and the Xiaomi Mi 10 Lite 5G. Both smartphones are expected to launch in late 2020.
The South Korean tech giant recently won chip manufacturing contracts to make Qualcomm’s Snapdragon 875 chips using the 5nm EUV process, Nvidia’s RTX 3000 series GPUs using the 8nm process and the POWER10 data center chip. from IBM using the 7nm process. Industry experts say multiple Qualcomm deals are the result of Samsung’s technological prowess and better prices.
Samsung will reportedly spend $ 8.6 billion each year to develop and improve its chip technologies and to buy new equipment. Although the South Korean company was late to the foundry industry, it competes closely with TSMC, the current market leader. According to TrendForce, Samsung has a 17.4% share of the global foundry market and its expected revenue for the third quarter of 2020 is $ 3.67 billion.
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