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Samsung looking to supply chips to Amazon, NVIDIA and Sony

According to industry insiders, Samsung is interested in supplying chips to Amazon, NVIDIA, and Sony, to replace the company's contract with Apple which is set to expire next year.
July 10, 2013
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.

[quote qtext=”Samsung is eyeing Amazon, Sony and NVIDIA as customers to offset the lost volume caused by the Apple’s decision to reduce purchases” qperson=”” qsource=”” qposition=”center”]

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.