Samsung looking to supply chips to Amazon, NVIDIA and Sony

July 10, 2013
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Samsung processor chip

According to industry sources, Amazon, NVIDIA, and Sony are emerging as potential new clients for Samsung’s semiconductor business. Samsung could certainly do with finding some new buyers for its chips, as the company not too long ago lost its smartphone rival Apple as one of its key buyers.

Samsung and Apple have an agreement whereby Samsung will supply various components until the end of 2014. Importantly though, under the deal, Samsung will manufacture Apple’s processor chips for the upcoming iPhone 5S and iPad only until the first half of next year. This forms a major part of Samsung’s business model, which, according to IC Insights, netted Samsung $4.33 billion in revenue last year, with Apple making up a massive 89 percent of this value, to the tune of around $3.8 billion.

Samsung will no doubt be keen to have new contracts lined up before the end of its deal with Apple, which is exactly what one of the sources suspects is going on.

Samsung is eyeing Amazon, Sony and NVIDIA as customers to offset the lost volume caused by the Apple’s decision to reduce purchases

Supposedly, Samsung is already in talks with Sony and NVIDIA over a potential deal, but the company hasn’t made it that far with Amazon yet. But this could be due to the fact that Amazon is developing its own processors for its future devices, possibly for use in its range of Kindle tablets.

If any of these deals were to go through, it could open the door for some Exynos powered handsets from the likes of Sony, or alternatively Samsung could end up manufacturing some new chipset developed by NVIDIA, which would be interesting to see. We also already know that NVIDIA is looking to license out its graphics technologies to other developers, so perhaps an NVIDIA/Samsung relationship could be on the cards?

We’ll just have to wait and see. But if any of these deals do go through, it will be interesting to see how this affects Samsung’s grip on the mobile market, and whether such a move will threaten Qualcomm’s position as the largest smartphone chip designer.

Comments

  • Fantastico

    Love to see a Kindle Fire Octa.

    • Locutus

      Are you a WP troll?

  • najiy91

    love to see an xperia honami octa(“,)

  • AsakuraZero

    hell no stay away samsung from sony!, your hellish exynos soc without any good support and documentation,not even the devil want your stuff anymore

    • yudi_hilmawan

      i agree with you i hope Sony will never use crappy exynos.

  • kascollet

    The article confuses manufacturing and designing/branding. Samsung could produce NVidia, Qualcomm, Amazon or whatever chips that they don’t design, just like Apple’s, beside it’s own Exynos line. This doesn’t mean at all that Samsung’s SoCs will be in others’ devices.

    • spade

      Indeed ;)

  • Someone

    Samsung is over unless they manufacturer other’s processors at cheaper prices. Anyway, not a fan of samsung and its bad manners, I but anything but not samsung, so samsung! Stay away!

  • CJ456

    Samsung is an eccentric company that’s for sure (their strategy of throwing as many things to the wall to see what sticks just because they can it’s… Different… Among other things) but if there is something they can do is manufacturing chips for mobile devices. They have a huge manufacturing power and they can make chips cheap and we’ll, so these deals don’t seem so remote to me. (even with Amazon designing their own chips, they could design it and Samsung make them, which would save Amazon a great investment in infrastructure).

  • cycad007

    Nvidia…stay away from SamSuck. Stick with TSMC for the majority of your needs…they have better process technology anyways. All Samsung does is backstab their partners/customers. See Apple (too many knifes in the back to list), Google (created another mobile OS to compete with Android), and HTC (withheld AMOLED screens).

  • Xennex1170

    Apple’s barginning finesse cuts both ways. While Apple had its contract with Samsung, Samsung’s profit margin was set really low though high volume. Now with Apple leaving, I suspect if Samsung is able to line up multiple clients for the freed up chip making capacity they can ask for a price that will give them a better margin. The funny thing is since the contract price favored Apple so much, to make up the profit lost, Samsung doesn’t have to sell 100% of the freed up capacity because it is unlikely that any other single company will be able to get them to price as low.