The alleged Snapdragon 875 deal seems to have gone Samsung’s path. Qualcomm, which is set to unveil its next flagship chipset in December, reportedly offered the deal to Samsung.
Samsung is a major player in the manufacture of semiconductors. And this prestigious deal, acquired by the Korean giant after the defeat of Taiwanese market leader TSMC, will help improve its position in the competitive market. The deal is speculated to be worth between $ 850 billion and $ 1 billion.
This is the first time Samsung has won the full order for a Qualcomm flagship product. Qualcomm is a flagship customer for Samsung̵
But what is Snapdragon 875?
The name Snapdragon 875 is not yet official. It’s Qualcomm’s 5G AP chip for premium smartphones.
The chip, set to be unveiled in December, will potentially power the Samsung Galaxy S21. High-end smartphones from Xiaomi and Oppo are also expected to be equipped with the new Qualcomm AP.
According to media reports from Korea, Samsung has started manufacturing the Snapdragon 875 at its foundry in Hwaseong, Gyeonggi Province, using extreme ultraviolet (EUV) lithography equipment.
Samsung will use its 5nm EUV process to manufacture Qualcomm’s next generation mobile processors.
After the first mass production of the EUV-based 7nm process in early 2019, Samsung recently added a new EUV-owned V1 line to its global foundry network in Hwaseong, Korea. With the commissioning of the new facility in Pyeongtaek in 2021, Samsung’s EUV-based foundry capacity is expected to increase significantly.
Samsung “chips” made its way into the US market
As a chip manufacturer, Samsung is making great strides in the US market.
This is the third US chip order for Samsung this year. A contract was signed last month to manufacture the IBM POWER10 chips for next generation servers. Earlier this month, the company received an order to manufacture Nvidia’s new RTX 300 series graphics processors.
Samsung will also manufacture Qualcomm’s mobile application processor for low-end 5G smartphones. It is also rumored that Samsung will make the Snapdragon 875G and Snapdragon 735G.
Earlier this year, Samsung received another order from Qualcomm to manufacture part of its 5G modem chip X60.
With U.S. chip giants being forced to cut ties with Chinese companies, it is proving to be beneficial for Samsung.
Samsung is expected to have 17.4% of the world market share in the third quarter, while TSMC is expected to acquire 53.9%.