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Qualcomm reportedly dropped Samsung to work with TSMC on new 7nm Snapdragon platform

By John Law & Cookie Monster - on 13 Jun 2017, 10:00am

Qualcomm reportedly dropped Samsung to work with TSMC on new 7nm Snapdragon platform

Like the smartphone market, the chipset making business is a brutal one. Korean publication ETNews claims that Qualcomm has decided to work with Taiwan Semiconductor Manufacturing Company (TSMC) instead of Samsung for its next generation 7nm Snapdragon platform. This is the second major customer that Samsung has lost in recent months after Apple tasked TSMC to produce the A11 chipsets for the iPhone 8.

TSMC enjoys several strategic advantages over the competition including Samsung and Globalfoundries in entering volume production of 7nm chips. Apparently, Qualcomm has been designing and developing its 7nm Snapdragon platform with tools from TSMC since the second half of 2016. TSMC also received expedited access to 7nm technology from ARM, which enables it to produce sufficient volumes before the end of 2018 for the introduction of Qualcomm's flagship platforms.

Qualcomm partnered with Samsung in January 2016 to manufacture the Snapdragon 820 platform. The latest development will be a major blow for Samsung's financial performance in the coming year since its semiconductor business contributed a bulk of the profits in Q1 2017.

Source: ETNews via Android Authority.