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Samsung Retaliates against Qualcomm for Switching to TSMC for 7nm Processors



It's being reported in Korea today that Samsung has decided to reduce its reliance on Qualcomm chips for next year's Galaxy S9 in an apparent tit-for-tat against the US chipmaker for exclusive foundry orders for 7nm mobile processors with its Taiwanese rival TSMC. For the upcoming S9, sources report that Qualcomm chips will make up less than 40 percent of the total shipments.


The report further noted that "Taking advantage of its status as a key client, Samsung is putting pressure on Qualcomm for future deals," said an industry source.


Samsung's local suppliers are also adjusting their production schedule for the S9 to reflect the reduced use of Qualcomm chips. For instance, Samsung plans to feature a substrate-like PCB, an advanced circuit board technology that houses components vertically to allow more internal space within the device, for the S9 phones running on its own Exynos chips only, and the suppliers are said to be working on 60 to 70 percent of the total shipments.


On the flip side Qualcomm is retaliating against Samsung for their Amicus brief sent to the FTC back in May. Samsung noted at the time that "Samsung has directly experienced, and been directly harmed by, the exclusionary conduct alleged in the FTC's complaint,' it said in a court filing Friday. '"Qualcomm refuses to license its [standard essential patents] on fair, reasonable, and non-discriminatory terms so that Samsung can make and can sell licensed chipsets. Given its position, Samsung is uniquely situated to assist the court in understanding the important antitrust principles at stake in this case.'


Samsung also said in its filing that Qualcomm agreed to fairly license its technology if standards bodies adopt tech that required the use of Qualcomm patents. But the South Korean company said Qualcomm hasn't kept its side of the bargain. Instead of licensing its standard essential patents to rival chipmakers, it only gives licenses to handset manufacturers."


Apparently Qualcomm want's Samsung to feel the pain of lost orders for assisting the FTC.


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