TSMC has promised Qualcomm that it will manufacture and supply Qualcomm's 5G chips. Photo = Sam Mobile
TSMC has promised Qualcomm that it will manufacture and supply Qualcomm's 5G chips. Photo = Sam Mobile

TSMC and Qualcomm's tandem; Samsung's pursuit to stiffen up

ANI | Updated: Apr 09, 2021 17:07 IST

Seoul [South Korea], April 9 (ANI/Global Economic): The COVID-19 pandemic has had a great impact on the semiconductor market, resulting in a global chip shortage that was not seen in the past. Although major semiconductor makers are expanding production, the chip shortage is expected to continue for a considerable period of time.
The US Qualcomm is the largest supplier of mobile chipsets, but it does not have its own production facilities, so it relies on foundries to produce chips. Sam Mobile reported on Wednesday (local time) that Qualcomm is making it more difficult for Samsung Electronics to pursue TSMC as Qualcomm is rapidly getting close to TSMC, the world's largest semiconductor foundry, and the close focus is currently placed on the deal.
Qualcomm commissioned the production its high-end chipset to both Samsung and TSMC. Production of Qualcomm's Snapdragon 888 was commissioned to Samsung in 2019 and 2020. Despite rumors that it can switch back to TSMC, it was announced that Qualcomm entrusts the production of its next-generation flagship processor to Samsung.

It is not only the lack of production of semiconductor chips that caused the supply shortage wave in the chip market. It is pointed out that the supply of packaging substrates and wafers for semiconductor chip production is also in deficit. In the midst of this, TSMC is taking the lead with advantages of economies of scale.
It is reported that TSMC is giving unprecedented preferences to Qualcomm. The industry believes that the strengthening of the relationship between TSMC and Qualcomm is taking a big step. TSMC decided to first produce high-end 5G chips for Qualcomm, despite the burden on production capacity. It is not known exactly which chips TSMC decided to implement, but the fact that TSMC expanded its chip production for Qualcomm itself presumes close relationship between the two companies and poses a great threat for Samsung.
The biggest concern is that Qualcomm will be able to create state-of-the-art flagship chipsets such as the next-generation version of Snapdragon with TSMC. If TSMC takes over next year's new flagship chipset, Samsung's pursuit of TSMC will become even more difficult.
Due to the shortage of semiconductors, Samsung Electronics had to cancel the release of Galaxy Note 21 already. As Samsung's flagship smartphone products maintain a policy of separating Exynos and Qualcomm chipsets, there is no choice but to adjust the product lineup in 2022 due to the lack of supply of chips from Qualcomm. (ANI/Global Economic)