Qualcomm joins top 5 Samsung customers with chip deal

Qualcomm joins top 5 Samsung customers with chip deal

According to a Korean agency in the first quarter of this year Yonhap NewsQualcomm has managed to become one of Samsung Electronics’ largest customers for the first time. This was facilitated by an increase in revenue received by a Korean contractor from providing mobile processor to order manufacturing services to an American developer. Combined, the top five customers account for about 14% of Samsung’s revenue.

    Image source: Samsung Electronics

Image source: Samsung Electronics

Qualcomm swapped places with Verizon on the list last quarter, although Deutsche Telekom, a German telecoms operator, retained its position among Samsung’s largest customers. Traditionally, Apple, which competes with the Korean giant, is also among its largest partners, as it relies on Samsung to supply components for smartphones – the same displays, for example. Best Buy and Supreme Electronics round out the top five revenue streams for Samsung.

In December, Qualcomm management confirmed that Samsung’s 4nm technology will be used to release Snapdragon 8 Gen 1 mobile processors. Rumor has it that Qualcomm has now fired a Korean contractor to release the Qualcomm Snapdragon 8 Gen 1 Plus processor, which will be released this Friday. It is believed that competing TSMC will produce it. The story of Qualcomm’s “throw” from TSMC to Samsung and back is quite rich in content, but from a business strategy perspective it aims to diversify the risks of dependence on a single processor supplier.

According to TrendForce data for the fourth quarter of last year, TSMC controlled 52.1% of the global semiconductor contract manufacturing services market, while Samsung Electronics was content with 18.3% of the market. Last month, officials from the Korean giant said there was high demand for the company’s core services, as well as a drop in scrap levels when using advanced engineering processes. Rumors about Samsung’s intentions to increase the prices of its services by up to 20% have not yet been officially commented on, but the Korean company’s management has reiterated in recent months that the pricing policy should be realistic and take into account the need in the expansion and invest in the modernization of production.

About the author

Dylan Harris

Dylan Harris is fascinated by tests and reviews of computer hardware.

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