The Chinese mobile phone companies increase the purchase of Samsung chips

 The Chinese mobile phone companies increase the purchase of Samsung chips

However, the technical strength of MediaTek is obviously inferior to that of Qualcomm. Although the high-end chip Tianji 1000 released by MediaTek last year is known as the 5g mobile phone SOC chip with the strongest performance, it actually lags behind the snapdragon 865 (the snapdragon 865 is not a 5g mobile phone SOC chip and does not inherit 5g baseband), One of the reasons is that in order to control the cost of chips, MediaTek did not use the most advanced 7Nm EUV process at that time, and its brand reputation was not as good as that of Qualcomm.

Oppo, vivo and Xiaomi have successively adopted Tianji 1000 chip, but the price of each mobile phone using Tianji 1000 chip is lower than that of one. Xiaomis Hongmi K30 premium version with Tianji 1000 is only 1999 yuan, while the mobile phones with high-tech snapdragon 865 chip generally cost more than 3000 yuan.

As MediaTek was unable to compete with Qualcomm, it was later reported that Qualcomm raised the price of mobile phone chips, but Chinese mobile phone companies could only accept it. Under such circumstances, Chinese mobile phone enterprises urgently needed to find new sources of mobile phone chips, so Samsung entered the field of view of Chinese mobile phone enterprises.

In the global mobile phone chip market, Qualcomm, apple, Huawei Hisilicon and Samsung are regarded as the most powerful mobile phone chip enterprises, and they have the same technical level. Among them, Samsung has the strength of the whole industry chain. It has chip design and chip manufacturing technology. Its chip manufacturing technology and TSMC are in the leading position in the world. This year, Samsung and TSMC have put into production the worlds most advanced 5nm process.

Due to the competition among the same industry, there are few chip companies in the world, except for Qualcomm, that hand over their chips to Samsung OEM. Chip companies mainly hand over their chips to TSMC. In order to promote the development of chip business, Samsung began to sell its own mobile phone chips to Chinese mobile phone companies, hoping to develop its chip business rapidly.

Vivo, one of the top four mobile phones in China, was the first to reach cooperation with Samsung. Vivo adopted Samsungs medium and high-end chip exynos980 in 2019. The exynos980 chip is slightly inferior to Qualcomms high-end chip snapdragon 865, but the high-end chip of Qualcomm is much stronger. With this differentiation advantage, vivo has made some achievements.

However, the high-end chip of Samsungs exo-5 may be slightly weaker than that of Samsungs high-end chip of 1080, which may even be affected by the high-end technology of Samsungs exo-5.

Prior to this, due to the reduction of the proportion of Chinese mobile phone companies in the adoption of Qualcomm chips, the companys performance has declined significantly. According to the results of the second quarter of this year, the companys revenue fell by nearly half year-on-year, and the net profit dropped by more than 60%. If Chinese mobile phone companies increase the adoption ratio of Samsung chips, The market share of Qualcomm in Chinas mobile phone chip market is bound to decline further, so will the performance of Qualcomm.

As Chinese mobile phone companies reduce the purchase quota of American chip companies such as Qualcomm, the performance of American chip companies has declined, and even chip inventory has appeared. Now that Chinese mobile phone companies increase the adoption of Samsung chips, the performance of American chip companies will be further hit.

Source: of week editor: Mao Xinsi_ NBJS11624