Reuters reports Samsung is in talks with ZTE to supply its Exynos chips to the Chinese market after the U.S. ban.
China's ZTE is likely in Samsung's sights, according to the report, as the firm was recently slapped with a seven-year sales ban in the USA which means it's no longer able to obtain chips from American chipmaker Qualcomm.
Inyup Kang, head of Samsung's logic chip developer System LSI, said that the company is in talks with all OEMs; offering them the opportunity to become a Samsung customer. However, Samsung later sent a statement to Reuters that there is no certainty that a deal will be reached with ZTE.
Reuters has reported that Samsung is in talks with a number of smartphone makers, including troubled Chinese manufacturer ZTE, to start supplying them with mobile processor chips from its Exynos brand. Notably, the company's System LSI business increased its shipments by 27 percent, Counterpoint stated.
As the smartphone market slows, Samsung's logic chip division also plans to seek growth in new fields such as fifth-generation mobile network technology (5G) and automotive, Kang said. This move if successful, can put Samsung in direct competition with Qualcomm, which supplies to all the major smartphone makers.
He said Samsung is in discussion with multiple automobile companies to develop chips for autonomous driving, declining to name the vehicle makers.
Currently Samsung, which is the world's smartphone manufacturer, is also the world largest semiconductor based microprocessor chipset manufacturer in the world.
This meant, companies such as Qualcomm and Intel won't be selling chips to ZTE, and the company is looking for other suppliers such as Samsung. Samsung's semiconductor business reported a 2017 operating profit of $33 billion, and it contributed more than 65 percent of the whole firm's record annual profit of 53.65 trillion won past year. He declined to provide last year's growth rate.
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