New Samsung Division Wants To Put Its Chip In All Your Devices

To the surprise of no one, Samsung has just created a new division within it silicon business that will focus on contract chip manufacturers for companies outside of Samsung. While it was probably a long time coming, the move couldn't have come at a worse time for Qualcomm, who is now beset by lawsuits from all sides. With Qualcomm begins to show cracks in its armor, Samsung seems to be getting ready to snatch up whatever piece of the pie Qualcomm might drop.

It's actually not that hard to think of conspiracy theories in Samsung's foray into the semiconductor market. If one remembers, it was rumored that Samsung was partly responsible for actually starting the flames of criticism against the overheating Qualcomm Snapdragon 810 back in 2015. Whether or not that's true, it didn't help that the Galaxy S6, for the first time, didn't use the ill-fated processor.

When the "fixed" Snapdragon 820 came out, it was revealed to have been made by Samsung for Qualcomm, hinting at its prowess in the semiconductor business. Its role in the Snapdragon 835 cemented its position even more. It was almost a sure thing that Samsung would want to start making chips for other companies as well.

It is, however, apparently roadblocked by Qualcomm. According to Samsung, the chip maker has artificially prevented it from selling its chips by refusing to grant it the license to make and sell chipsets. So despite having what initially seemed to be a harmonious relationship, Samsung has sided with Intel to back up the US Federal Trade Commission's monopoly lawsuit against Qualcomm.

For now, the new contract chip manufacturing division still operates inside Samsung's larger semiconductor business. Spinning it off to its own subsidiary will most likely depend on the outcome of the Qualcomm monopoly lawsuit. Whether it will be a profitable business, however, depends on how fast Samsung can scale production for a larger number of customers. Without causing "manufacturing anomalies" of course.

SOURCE: Reuters