Samsung Electronics will produce all of Qualcomm’s AP chips for next-generation smartphones.
Samsung Electronics’ foundry division has won a contract to produce the Snapdragon 875 (tentative name), Qualcomm’s latest application processor (AP), in a 5-nanometer process.
The Snapdragon 875 is Qualcomm’s 5G AP chip for premium smartphones and is scheduled to come out in December. Samsung Electronics’ Galaxy S21 (tentative name) and high-end phones of China’s Xiaomi and Oppo will be powered by the new Qualcomm AP.
The size of the global foundry market reached US$65.5 billion in 2019, said market research company TrendForce. The market is growing with sales of the top 10 foundry companies already hitting US$57.2 billion in the first three quarters of 2020.
An increase in demand for 5G and artificial intelligence (AI) semiconductor chips is sparking off the rapid growth of the foundry market. As orders keeps flowing into such fables companies as Qualcomm, Nvidia and AMD, the foundry market is growing on contract manufacturing for them.
Samsung Semiconductor Company is a division of Samsung Electronics and is the biggest semiconductor manufacturer in the past 20 years. The latest deal will help the Korean giant to reinforce this position, and reports are the deal is for all the Snapdragon 875 chips, which will cost Qualcomm about between $850 million and $1 billion.
The San Diego chip company had a keynote during IFA 2020 earlier this month, where many smartphone company owners showed up on stage to pledge their allegiance to Snapdragon chipsets. Among them are Oppo and Xiaomi, and we expect to see the next Mi flagship arrive with the Snapdragon 875 as early as March.