Qualcomm Inc. said that Samsung was the sole manufacturer for the new Snapdragon 820 mobile processors.
Advertisement
The deal is estimated to be worth more than Dollars 1 billion, which comes rather nicely as Samsung is heading into another earnings drop due to the slowing demand for consumer electronics and components, according to a Reuters’ report. Qualcomm has been in trouble recently, as Apple smartphones – for which Apple make the chips – outsell others.
Samsung will be making the Snapdragon 820 processor, the latest model that replaces the 810.
Advertisement
The world’s top maker of memory chips has been trying to grow its processor business to diversify its revenue stream. Now, the latest news shows that the leading mobile chipset manufacturer Qualcomm has managed to switch allegiances, and this time, the manufacturing contract has been given to Samsung. The fact that manufacture has been moved to Samsung suggests that TSMC, previous producer of the chips, was to blame for the overheating issue; either way, teaming up with the South Korean powerhouse will mean a fresh start. Samsung’s 14-nanometre technology has helped the firm gain ground against TSMC and pick up new clients. Qualcomm’s orders could also attract more customers away from TSMC to Samsung, he said. Despite the rivalry, it has quietly been producing chips for Apple for years, and some Android users are surprised that it would use Snapdragon in new devices when Exynos is such a high-quality system. These results are possible through incorporating the 3D FinFET structure on on-board transistors. It doesn’t take long to figure out that the large customer was Samsung and now with Snapdragon 820 production deal, Qualcomm wants to mend severed ties.
