In a bid to reduce dependence on Qualcomm for the development of key chips for next generation smartphones, brands like Fujitsu Ltd, DoCoMo, Panasonic Mobile Communications Co., among others have shifted focus to Samsung. The South Korean company will now co-develop these chips that will power next generation smartphones.
Entering into a partnership?
Talks of the co-development are still in progress, and the venture should most likely cement from the next year, onwards. The key chips developed will reportedly control wireless communications, and signals. Almost 80 percent of the market share of these semiconductors, also known as baseband chips lie with Qualcomm, and with the joint venture coming through DoCoMo will essentially be the one with the largest share in the pie. The chips thus manufactured will be used in Samsung's smartphones, and will also be sold to other players in the market.
It is being increasingly believed that post the manufacturing of these co-developed chips, Samsung will get a helping hand with its plans of developing next generation smartphones. DoCoMo, on the other hand will have lower chip procurement costs.