Samsung in talks to sell Exynos chips to ZTE following United States ban

Remigio Civitarese
Mag 17, 2018

Because of that, ZTE doesn't seem to have a lot of options left other than using Exynos chispets in its smartphones.

Reuters reports Samsung is in talks with ZTE to supply its Exynos chips to the Chinese market after the United States ban. Samsung also uses external processors such as Qualcomm's Snapdragon, on some of its flagship products like the Galaxy and Galaxy Note series. This will lead to more direct competition with Qualcomm.

Samsung said in a statement that no kind of deal with ZTE has been reached as of yet, but Kang - who is a former Qualcomm executive - noted that Samsung may well announce a new client for its Exynos chipsets in the first half of 2019. It also looks like the deal will likely go through even if ZTE's ban is overthrown, as the company would like to maintain a diverse source of vendors, so that they don't get stranded as in the current situation. Its policy is to treat all vendors equally. Basically, this means that ZTE won't be able to use Qualcomm's chips inside its smartphones, so the Chinese company is looking for another supplier. Notably, the company's System LSI business increased its shipments by 27 percent, Counterpoint stated. It said in January that it is providing automaker Audi with Exynos processor chips.

Currently, memory chip exports are Samsung's biggest earner, with Reuters reporting that the expansion is an effort to capitalise more on the internal hardware market.

Now ZTE's core business operations have been shut down post this ban and the company is looking for ways to widen its supply chain and is in talks with several companies including Samsung for supplying microprocessors.

Samsung's semiconductor business reported an operating profit of 35.2 trillion won (a whopping £24.5 billion) in 2017.

Memory chips contributed about 96 percent of the profits in the semiconductor business, while System LSI and foundry took up the rest with about 1.44 trillion in 2017 operating profits. Enter your email to be subscribed to our newsletter.

Altre relazioniGrafFiotech

Discuti questo articolo

Segui i nostri GIORNALE