Samsung proffers the chipsets for Qualcomm but at the current moment, Qualcomm has chosen not to give the deal to Samsung to make the Snapdragon 865 SoC.
So it looks like Qualcomm is worried. They’re concerned that Samsung might do better Exynos chipsets than their own Snapdragon SoC’s. You see all smartphone companies use Qualcomm’s Snapdragon chipsets in their devices but Apple, Huawei, and to some extent Samsung. Apple tenders its own A-series bionic chip, Huawei makes Kirin chipsets while Samsung does a mix of Exynos and Snapdragon chipsets on their devices.
Recently we heard that Samsung is planning to use the Snapdragon 865 chipsets in the Galaxy S11 devices in more markets than ever before. Usually, they use Snapdragon in the US, Canada, and China while they use their own in house Exynos chips in the rest of the world. However since Samsung understands that the Snapdragon 865 is a better chipset over the Exynos 990 they shifted their strategy and will do Snapdragon 865 in more markets.
For those of you who don’t know Samsung has a chipset foundry business where they manufacture the chipsets. Qualcomm is their biggest customer. The Snapdragon processors are designed by Qualcomm but Samsung is the one who produces them in their own factories. Now, at the last moment, Qualcomm has decided that they’re not going to give Samsung the contract to manufacture the Snapdragon 865 processors.
Instead, they’ll let TSMC make these processors for them. Business Korea which is a big south Korean publication is saying the reason for this is that Qualcomm doesn’t want to share its AP-related intellectual properties with Samsung. This way it can better protect its trade secrets and weaken Samsung’s foundry business all at the same time.
You see Qualcomm doesn’t think that TSMC is better than Samsung. In fact, Samsung’s foundry is better because of the EUV tech but Qualcomm doesn’t want Samsung to know its trade secrets and design drawings which it can then potentially use to improve its own Exynos chipsets. You see a few months ago Samsung made a deal with AMD where Samsung is going to license the Radeon graphics for the Exynos chipsets.
Not only that Samsung has decided to move away from Mangoos cores and will instead use ARM’s cores directly. AMD, as you know, is a big name in the PC industry and their graphics is the best out there. Using their graphics would drastically improve the GPU of Exynos, the one area where Exynos chips lag behind the Snapdragon. Also, directly using ARM’s cores would mean the Exynos will perform almost exactly like Snapdragon because Qualcomm also directly uses ARM’s cores with some slight tweaks.
Essentially starting 2021, Exynos chips will be both perform equal to Snapdragon chipsets or will be more useful than Snapdragon chipsets. And that’s the reason Qualcomm is worried that their ultimate dominance in the chipset industry is under question also that’s the reason they want to weaken Samsung’s chipset business.
Qualcomm is thinking dirty, just like they did with Apple. I know playing dirty is part of the market but this would mean that Samsung’s foundry business will take a huge hit this year. Samsung has chosen to use more Snapdragon 865 and less Exynos 990 which means they don’t have multiple chipsets to manufacture also will lose billions in revenues this year.
But I hope the AMD deal would turn the fortunes for them and they don’t have to rely on Qualcomm for the chipset business. They can just use Exynos in all of their devices and ditch the Snapdragon altogether. With that being said, let me know what do you think about this down in the comments and as always I’ll see you tomorrow…Peace out!