Samsung shows interest in selling Exynos chipsets to ZTE and other OEMs

  • Samsung shows interest in selling Exynos chipsets to ZTE and other OEMs

Samsung shows interest in selling Exynos chipsets to ZTE and other OEMs

CHIPMAKER Samsung is reportedly in talks with several of its rival OEMs, including beleaguered ZTE, to supply them with its Exynos mobile processor chips in a bid to take on Qualcomm. Up until now, the South Korean company had only one external client for its mobile chips, Meizu, but starting next year it may add at least one more. The company later clarified the statement in relation to ZTE, which is now facing a seven year ban from America for violating sanctions on Iran and North Korea.

It hasn't been confirmed which OEMs are now in Samsung's sights, but given ZTE's recent debacle leaving the company on the verge of shutting down, the Chinese manufacturer could very well be roped into the discussion. This will lead to more direct competition with Qualcomm.

"We are talking to all OEMs", Inyup Kang, head of Samsung's logic chip developer called System LSI, told Reuters in an interview, referring to original equipment manufacturers. 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. Right now, Samsung is ranked far behind Qualcomm and Apple, its chief competitors, but the use of Exynos chips by the company's mobile division has helped it become the fastest growing player in the segment, according to Counterpoint. He stated that the company is in discussion with "multiple automobile companies" to develop chips for autonomous driving, but did not name the auto makers. It said in January that it is providing automaker Audi with Exynos processor chips.

Samsung shows interest in selling Exynos chipsets to ZTE and other OEMs

This meant, companies such as Qualcomm and Intel won't be selling chips to ZTE, and the company is looking for other suppliers such as Samsung.

Currently Samsung, which is the world's smartphone manufacturer, is also the world largest semiconductor based microprocessor chipset manufacturer in the world. Finally, Mr. Kang stated that his business is expected to see a 5-10 percent revenue growth this year in dollar terms. He declined to provide last year's growth rate.