SamMobile has affiliate and sponsored partnerships. If you buy something through one of these links, we may earn a commission. Learn more.

Qualcomm becomes one of Samsung’s top clients for the first time

Business
By 

Last updated: May 17th, 2022 at 22:42 UTC+02:00

Samsung’s contract chip manufacturing business is a cash cow for the company. The conglomerate makes a significant chunk of its revenues from this division. It’s also actively trying to win over more customers from TSMC, the leading contract chip manufacturer.

Qualcomm has often relied on Samsung’s foundry to manufacture its chips. It tends to split orders between Samsung and TSMC. Samsung did get a big chunk of the orders for the Snapdragon 8 Gen 1. Perhaps that’s why Qualcomm was one of Samsung’s top five customers for the very first time.

Samsung is still a major player in the chip manufacturing industry

Korean media reports that Samsung’s recent quarterly filing included a document that mentioned Qualcomm as one of its top five customers in the first quarter of this year. The top five companies in order are Apple, Best Buy, Deutsche Telekom, Qualcomm, and Samsung Electronics. For those who are unaware, the Exynos chips in Galaxy devices are also made by Samsung’s chip division.

This is the first time that Qualcomm has made it on the list but whether it remains there remains to be seen. It’s believed that Qualcomm’s upcoming Snapdragon 8 Gen 1+ chipset will be manufactured by TSMC. Qualcomm was reportedly looking to switch from Samsung due to yield issues with its 4nm node.

That’s not to say there’s still no significant demand for Samsung’s chip manufacturing capacity. The head of Samsung’s foundry market and strategy team Kang Moon-soo recently revealed that $158 billion worth of orders for its foundry business.

Samsung may also be looking to increase its margins on chip manufacturing to further improve profitability. It was recently reported that Samsung is in negotiations with clients to hike chip manufacturing prices by up to 20%.

Join SamMobile’s Telegram group and subscribe to our YouTube channel to get instant news updates and in-depth reviews of Samsung devices. You can also subscribe to get updates from us on Google News and follow us on Twitter.

Business FoundryQualcomm
Load 0 comments

You might also like

SamMobile Podcast Episode 10: Let’s talk Samsung and ARM, OLED l …

Some interesting reports and official news in the world of Samsung began emerging over the past week. And sinc …

  • By Mihai Matei
  • 2 weeks ago

Snapdragon 8 Gen 2 rumored specs reveal unusual CPU core layout

It hasn’t been that long since Qualcomm announced the Snapdragon 8+ Gen 1 chipset, which is supposed to …

  • By Mihai Matei
  • 2 weeks ago

Qualcomm wants to buy ARM and it may need Samsung’s help

In 2020, rumors claimed that Samsung was one of the many companies interested in acquiring British chipmaker A …

  • By Adnan Farooqui
  • 3 weeks ago

Samsung may hold groundbreaking for $17 billion Texas chip plant in Ju …

Samsung recently confirmed that it’s going to build a new chipmaking plant in Taylor, Texas. The cost of …

  • By Adnan Farooqui
  • 4 weeks ago

Samsung looking for tax breaks to build more chip plants in Austin

Austin, Texas was already home to one of Samsung’s most advanced chip manufacturing facilities in the wo …

  • By Adnan Farooqui
  • 1 month ago

Motorola’s Galaxy Z Flip 4 rival coming soon with Snapdragon 8+ …

Samsung will launch the Galaxy Z Flip 4 and the Galaxy Z Fold 4 sometime in Q3 2022. Unlike last year, though, …

  • By Asif Iqbal Shaik
  • 1 month ago