The company could soon be providing its next generation processors for the tech giant’s smartphones.
It has been recently reported that Qualcomm Inc, the American chipmaker, now intends to produce mobile technology in the form of its next-generation Snapdragon 820 processors for Samsung Electronics Co. Ltd.
This has come as a surprise to many after Samsung had recently chosen to use its own processors for its latest launches.
The flagship mobile technology from Samsung, including the Galaxy S6, included the use of its Exynos processors. This decision opted away from the Qualcomm Snapdragon 810 and required the American company to have to slash its financial outlook for 2015. Now, Re/code is reporting that the U.S. processors could soon be finding their way back into Samsung devices. Equally, it should be noted that neither Qualcomm nor Samsung have responded to the report. That report also didn’t mention whether or not the U.S. chipmaker was investigating any other manufacturers for the use of its 820 processors, aside from the South Korean tech giant.
It indicated that there has been quite the momentum building in terms of this type of mobile technology.
For example, there has been growing drive for the system chips business at Samsung, which is expected to turn toward a profitable direction before the close of 2015. That said, it could make things more of a struggle for Taiwan Semiconductor Manufacturing Company (TSMC), since that firm has received the majority of the Qualcomm orders for the higher end processing chips.
The 14 nanometer manufacturing tech at Samsung provides the company with an advantage over its rivals, including TSMC. The reason is that the smaller size of their mobile tech chips produce greater energy efficiency and enhance performance. Analysts and investors have stated that this superior technology will generate greater interest in the contract manufacturing business at Samsung and will only drive revenues.
Recent media reports have stated that Samsung will be manufacturing mobile technology processors for the next generation of iPhones from Apple, which are expected later in 2015. Moreover, it has also taken on a new contract manufacturing client in Nvidia Corp.
