Samsung could provide ZTE and others with Exynos chips
Samsung’s Exynos system-on-chips are utilized in many Samsung smartphones. For instance, the worldwide variants of the Galaxy S9 and the Galaxy S9+ are powered by the flagship Exynos 9810 SoC. Up till now, the one exterior smartphone consumer to make use of Exynos SoCs has been Meizu.
Nevertheless, a Reuters report now states that Samsung Electronics is in talks with “a number of smartphone distributors” together with ZTE to produce cellular processor chips. This can result in extra direct competitors with Qualcomm. Samsung generates most of its earnings from its reminiscence chips, and the report notes that it has been ramping up improvement of logic chips equivalent to cellular processors, picture sensors and automotive chips in a diversification try.
Samsung LSI’s head, Inyup Kang, advised Reuters that the corporate is “speaking to all OEMs.” He additionally said that he expects to announce a brand new consumer for Exynos SoCs within the first half of 2019.
ZTE’s latest troubles are well-known at this point. Not too long ago, the corporate was pressured to close its main operations. That is stated to have created urgency for ZTE to diversify its suppliers, in response to unnamed analysts quoted within the report. Nevertheless, Samsung later despatched an announcement to Reuters that there isn’t any certainty deal can be reached with ZTE. Its coverage is to deal with all distributors equally.
The report famous that such efforts by Samsung are prone to put additional strain on Qualcomm. Proper now, Samsung is ranked far behind Qualcomm and Apple, its chief opponents, however the usage of Exynos chips by the corporate’s cellular division has helped it turn into the quickest rising participant within the section, in response to Counterpoint. Notably, the corporate’s System LSI enterprise elevated its shipments by 27 p.c, Counterpoint said. Qualcomm additionally faces competitors from Huawei, which makes use of in-house HiSilicon Kirin SoCs in its smartphones.
Mr. Kang advised Reuters that Samsung’s logic chip division additionally plans to hunt development in new fields equivalent to 5G community know-how and automotive, because the smartphone market is slowing down. He said that the corporate is in dialogue with “a number of car corporations” to develop chips for autonomous driving, however didn’t title the automotive makers. In January, the corporate introduced that it’s offering Audi with Exynos chips.
System LSI nonetheless makes use of Samsung’s foundry for all of its manufacturing wants for now, however Mr. Kang added that the enterprise is in talks with different contract producers to diversify manufacturing in areas Samsung’s foundry isn’t ready for but, equivalent to high-voltage automotive merchandise.
The report famous that TSMC is presently the world’s prime contract chip producer, adopted by International Foundries, UMC and Samsung. Samsung’s semiconductor enterprise reported a 2017 working revenue of $33 billion, and it contributed greater than 65 p.c of the entire agency’s file annual revenue of 53.65 trillion received final yr.
Reminiscence chips contributed about 96 p.c of the earnings within the semiconductor enterprise, whereas System LSI and foundry took up the remainder with about 1.44 trillion in 2017 working earnings. Lastly, Mr. Kang said that his enterprise is anticipated to see a 5-10 p.c income development this yr in greenback phrases.
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