Science

Samsung reportedly in talks with ZTE to supply Exynos smartphone CPUs

Samsung reportedly in talks with ZTE to supply Exynos smartphone CPUs”

The semiconductor business is a driving force of Samsungs profits, but its Exynos mobile chipsets are rarely seen in other manufacturers devices, with the only external client being Meizu with the latest 15 Plus phone.

Reuters reported the Korean chaebol is talking with ZTE and other OEMs to start supplying them with mobile processors in order to up its rivalry with Qualcomm.

ZTE has recently been subject to a trade ban from the USA, meaning it can no longer use chips made by Qualcomm.

The news follows on from the implementation of a U.S. trade embargo against ZTE over sanctions busting, which bars U.S. companies from trading with ZTE - instantly cutting out up to a quarter of the company's supply chain.

Samsung is reportedly talking to "all OEMs" as it looks to expand its Exynos brand.

Qualcomm also faces competition from Chinese companies such as Huawei Technologies [HWT.UL], which uses its own processing chips called HiSilicon in its flagship smartphones. Before this, some of Lenovo's devices have also used Exynos processors.

Furthermore, Inyup Kang, Samsung System's LSI Head confirmed that the smartphone maker is in talks with several OEMs from across the world and will announce their first client by the first half of 2019.

TSMC is the world's top contract chip manufacturer, followed by the likes of USA -based Global Foundries, Taiwan-based UMC and Samsung.

Out of this semiconductor business, memory chips contributed about 96 percent of the profits as it rode a "boom" cycle, while System LSI and foundry took up the rest with about 1.44 trillion won in 2017 operating profits, according to data from Mirae Asset Daewoo Securities. However, he declined to provide the results of growth in the past year.



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