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Samsung Electronics’ System LSI business division plans to supply its Exynos smartphone application processor (AP) to Chinese smartphone makers Xiaomi, Oppo and Vivo in 2021.
Samsung reportedly plans to supply its APs for some inexpensive smartphones from Chinese manufacturers in the first half of 2021. As for APs for premium smartphones, which are mainly supplied by Qualcomm of the United States, it is likely that Samsung Electronics can then supply them by gaining recognition for their technical prowess.
The Exynos AP had been used primarily for Samsung Electronics ‘Galaxy smartphones until the mid-2010s. Samsung Electronics’ Wireless Business Division, which also used Qualcomm’s APs, leveraged Exynos APs in negotiations with Qualcomm.
The System LSI Business Division has started to reduce the supply of AP Exynos to the Wireless Business Division due to a low profit margin and sought to secure new customers, focusing on Chinese manufacturers. A good example is the supply of the Exynos 980 and 880 APs to Vivo in 2020.
Earlier this year, Samsung Electronics decided not to use the Exynos 990 premium AP for the Galaxy S20 model released on the Korean market, a setback for its premium AP. However, APs scheduled to go out are renowned for their high technological standards in the semiconductor industry. Notably, the 1080 AP, which is produced using the company’s 5nm microfabrication process, will be charged on Vivo’s 5G X60 smartphone and Samsung’s Galaxy A series. The Exynos 1080 reportedly uses the UK ARM’s Coretex A78 CPU, which performs 20 percent better than its predecessor, and the Mali G78 GPU, which shows 25 percent better performance than its predecessor. Industry sources say the 1080 AP outperforms Qualcomm’s AP Snapdragon 865 flagship. In early 2021, Samsung will launch the Exynos 2100.
Samsung Electronics benefits from the sanctions against Huawei. While Huawei used an AP of their own development, Xiaomi and Oppo used AP from Qualcomm and MediaTek. Xiaomi and Oppo need to secure additional APs to expand production as Huawei is in trouble. Under these circumstances, the strong cost competitiveness of the Exynos AP attracted the attention of Chinese smartphone makers.
Samsung Electronics’ status in the global AP market is expected to rise to third place with the delivery of AP to Xiaomi. Samsung will be able to eat up the market shares of Qualcomm, the world’s number one AP company and MediaTek, the number two player, both of which supply APs to Xiaomi and Oppo. In the second quarter of 2020, Samsung Electronics was tied for fourth place (13 percent) with Apple after Qualcomm (29 percent), MediaTek (26 percent) and Hi-Silicon (16 percent).
