Published: Wed, May 16, 2018
Research | By Jody Lindsey

Samsung in talks with ZTE, others to supply mobile processor chips: executive

Samsung in talks with ZTE, others to supply mobile processor chips: executive

Samsung is reportedly in talks with ZTE and other OEMs about supplying them with Exynos chips.

According to Reuters, Samsung is only in talks with ZTE at this moment for supply of its Exynos chipsets.

Currently, the only other manufacturer who uses Exynos processors in its smartphones is Meizu.

Its search for new clients for the Exynos chips comes as the United States banned its companies from selling components to China's ZTE for seven years after it violated the terms of a settlement deal for illegally shipping goods made with USA parts to Iran and North Korea.

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The news follows on from the implementation of a USA trade embargo against ZTE over sanctions busting, which bars United States companies from trading with ZTE - instantly cutting out up to a quarter of the company's supply chain. Since the smartphone market is slowing down, Samsung is also hoping to start delivering 5G chips to the automotive industry, with Reuters reporting Audi is going to become its first client. Inyup Kang said that Samsung will continue to negotiate with ZTE regardless of the outcome of trade negotiations between the U.S. and China.

The Exynos 9610 processor consists of four ARM cortex-A73 cores that run at 2.3GHz, as well as an additional four 1.6GHz cortex-A53 cores to help smartphones run apps and multiple tasks quicker. Before this, some of Lenovo's devices have also used Exynos processors.

"We are discussing with all OEM manufacturers", - said the head of division on development of a logic chip System LSI Inup Kahn, adding that for a new customer, switched to the Exynos chipsets, are expected to be announced in the first half of 2019.

Samsung's semiconductor business reported an operating profit of 35.2 trillion won (a whopping £24.5 billion) in 2017. He declined to provide last year's growth rate.

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