It seems like Samsung Semiconductor has snatched away the deal to manufacture Qualcomm’s upcoming application processor(AP) from TSMC. According to several reports emerging from South Korea, Samsung Semiconductor managed to offer a better deal for the manufacturing of the upcoming Snapdragon 875, in a 5nm process than TSMC which won them the contract for the entire batch of the Snapdragon 875.
The upcoming Snapdragon application processor (AP) is expected to follow the name convention and be known as Snapdragon 875 and is expected to be introduced later this year in December where you can also expect the announcements from smartphone manufacturer announcing their 2021’s flagship with this Snapdragon SoC.
A report from Hankyung, suggests that the deal is worth around KRW 1 trillion which translates to $844 million and according to the report it is the very first time that Samsung Semiconductor has been contracted to manufacture the whole batch for the flagship Snapdragon chipset which means Samsung will be manufacturing Snapdragon 875 for demand equivalent to a whole year.
According to a few industry insiders, Samsung won this contract due to the low prices it provided to Qualcomm while matching the quality standards equivalent to TSMC. Samsung is said to produce the same quality of chipsets but for lower costs mainly due to the large quantity of production since it will be also manufacturing their own Exynos chipsets.
Qualcomm’s next-generation chipset is supposed to be used by Samsung themselves for the upcoming S21 lineup and other smartphone brands such as Xiaomi and Oppo have also shown interest in using the upcoming flagship SoC for their flagship smartphones which can debut as early as the first quarter of 2021.
The Snapdragon 875 is expected to go in the mass production at Samsung’s 5nm EUV foundry line in Hwaseong in South Korea.
Rumors have been also suggesting that Samsung Semiconductor will be manufacturing Snapdragon 875G, Snapdragon 735G and Snapdragon 400 series 5G enabled chipsets for Qualcomm.
The South Korean giant has recently received orders to manufacture chips for the American giants like IBM Intel, and Nvidia on the contractual basis which gives it quite a business and narrows the gap between the champion of the industry TSMC. Samsung has said that it will be the biggest semiconductor manufacturer by 2030 and current happenings are pointing positively in that direction.
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