Despite TSMC being technologically more proficient than Samsung in the chip manufacturing race, a new report states that the Korean giant will be handling all of Qualcomm’s Snapdragon 875 orders. Earlier, Samsung was apparently facing mass production difficulties, and it was reported that the company lost all orders to TSMC. Fortunately, it looks like the offer is seemingly back on the table and Samsung is leading the charge.
Reports State That Samsung Offered Qualcomm a Better Deal Than TSMC to Take All of the Snapdragon 875 Orders
According to foreign media reports, Samsung may have offered Qualcomm a better deal as opposed to TSMC. With clients like Apple and Huawei on its side, the Taiwanese semiconductor behemoth would have likely charged Qualcomm a hefty sum to use its advanced technology for the development of Snapdragon 875 shipments. The reports mention that the new deal between Samsung and Qualcomm will reach 1 trillion KRW, or approximately $850 million.
All keep in mind that there was an earlier leak suggesting that Samsung would develop chips for the Snapdragon 875G, so for the moment, it’s not confirmed if the Snapdragon 875, Snapdragon 875G, or both will be manufactured by Samsung. In a way, a less expensive deal for Qualcomm is actually a blessing for a lot of flagship smartphone manufacturers, including Samsung. That’s because earlier, there were rumors floating around that the Snapdragon 875 and the Snapdragon X60 package would be too costly, forcing manufacturers to up the price for their flagship offerings more than what they were charging with the Snapdragon 865 running in current-gen devices.
With the new deal, perhaps we can show a little optimism regarding the pricing of premium Android smartphones. In addition to the Snapdragon 875, Samsung is also reported to handle orders for less powerful SoCs like the Snapdragon 735G and the Snapdragon 400 series with integrated 5G modems. The Korean manufacturer is also expected to make a direct jump from 5nm to 3nm in order to narrow the technological gap between TSMC. Although Samsung’s closest rival in the chip-making arm is still in the lead, Samsung hopes to reduce that difference in the near future.
News Source: Sina