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| Samsung wins contract to manufacture Qualcomm 5G modem |
Reuters quoted people familiar with the matter as saying that Samsung's semiconductor manufacturing unit has received a request to use the latest chipmaking technology to produce new Qualcomm chipsets supporting 5G networks. This would strengthen South Korean society to gain market share. The Taiwanese rival TSMC is the largest.
The agency said that Samsung will at least create some Snapdragon X60 modems that connect devices such as smartphones with 5G networks. Two sources said: The X60 modem was built using Samsung's 5nm technology, which makes the chip smaller and more energy efficient than previous generations. A source said: TSMC must also produce modem chips for Qualcomm.
Samsung has a reputation among consumers on its phones and other electronic devices, and is the world's second largest chip maker. It has the advantage of using your own processors in some devices and then selling chips to external customers. For example: (IBM), IBM, and NVIDIA. Among other companies.
In the past, most of Samsung's semiconductor sales came from memory chips. As supply and demand fluctuate, prices fluctuate strongly. To reduce dependence on this rapidly changing market, Samsung announced last year a plan to invest $ 116 billion in non-memory chips by 2030.
The agreement with Qualcomm explains Samsung's progress in this direction. Although he received many orders from Qualcomm, he is a pioneering customer in Samsung's 5 million square meters technology. Samsung plans to develop this technology to outperform TSMC, and TSMC also plans to start mass production this technology this year.
Samsung's win in Qualcomm's deal could boost the chip, as the X60 modem can be used on many mobile devices when switching to a 5G network. According to TrendForce, Samsung acquired market share of 17.8% in the last quarter of 2019, while TSMC's market share reached 52.7%.