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Qualcomm And TSMC Joining Forces Could Spell Bad News For Samsung

According to SamMobile (via Digitimes) Samsung may find its self in a tough spot thanks to Qualcomm and TSMC joining forces. Thanks to this pandemic a global chip shortage is still ongoing. This shortage around the world is unprecedented, and almost every chipmaker is trying to solve it. Even the White House is looking into solutions.

Samsung is a big player in supplying mobile chipsets. However, it looks like two of its biggest competitors will be joining forces. Qualcomm is a huge supplier of mobile chipsets, but the company does not produce its own chips.

On the flip side TSMC supplies mobile chipsets, and they have the capability to produce chips as well. Qualcomm is dependent on companies like TSMC. As a result, Qualcomm and TSMC joining forces make a lot of sense. But it also puts Samsung in a peculiar position.

Samsung and Qualcomm have worked together before to produce Qualcomm’s chips. In fact, Samsung made the Snapdragon 888 chipset for Qualcomm. But, TSMC made the chips for Qualcomm in 2019 and 2020.

Qualcomm and TSMC joining forces could be bad for Samsung

Qualcomm and TSMC joining forces could take some business away from Samsung. There is news that Qualcomm will use Samsung to process its next high-end chip.

But going forward it may be TSMC who takes over. Finding the amount of manufacturing capacity that a company like Qualcomm needs is leading to it finding a solution.

According to reports Qualcomm and TSMC are working to make their current relationship stronger. TSMC is agreeing to manufacture a batch of high-end 5G chips for Qualcomm. In fact, not only will they be manufacturing, but Qualcomm will get priority.

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It is unknown what TSMC will precisely accommodate which chips, but this is still a big piece of news. Now how does this affect Samsung? It could be that TSMC may be making Qualcomm’s next high-end chipset.

Even if they do not, Samsung may still find itself hurting for enough Qualcomm chips to put in its flagship devices. The chip shortage could hurt Samsung on multiple fronts. They can lose out on money from making chips for Qualcomm.

As said, the company can also miss out on Qualcomm’s next high-end chip. Smartphones like the Galaxy S21 come with two different chipsets based on which market. However, the Snapdragon chips from Qualcomm generally outperform Samsung’s Exynos chips they use in other markets.

As a result, users can see a noticeable difference in performance. Only time will tell if this partnership between Qualcomm and TSMC will truly hurt Samsung.

The post Qualcomm And TSMC Joining Forces Could Spell Bad News For Samsung appeared first on Android Headlines.