Samsung could sell Exynos chips to more OEMs, including ZTE

16 May, 2018, 21:37 | Author: Sammy Rose
  • Samsung plans to supply ZTE and other OEMs with Exynos chipsets

Samsung may finally be looking to sell its proprietary processors - Exynos, to external OEMs.

Reuters quotes former Qualcomm, now Samsung, executive Inyup Kang as saying that Samsung is talking to "all OEMs" about licensing the SoCs.

The search for new clients comes right after ZTE got banned from purchasing Qualcomm products for violating trade embargos and importing Snapdragon-powered devices in Iran and North Korea.

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

Samsung plans to supply ZTE and other OEMs with Exynos chipsets

Its efforts like that will put further pressure on the industry leader Qualcomm, which said last month it expects the loss of business with ZTE to lower its profits by 3 cents per share next quarter.

Reuters has reported that Samsung is in talks with a number of smartphone makers, including troubled Chinese manufacturer ZTE, to start supplying them with mobile processor chips from its Exynos brand. Qualcomm has dominated the mobile chipset market for years now, but it would appear that Samsung's interested in doing something about that. Kang is president of Samsung's LSI Logic division and led Qualcomm's modem development for 13 years. Currently Samsung's only client for the Exynos processers is the Chinese OEM company Meizu.

Currently Samsung, which is the world's smartphone manufacturer, is also the world largest semiconductor based microprocessor chipset manufacturer in the world.

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.

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