According to Reuters, an executive from Samsung Electronics stated recently that Samsung is negotiating with several Chinese smart phone manufacturers on the supply of mobile processor chips, including ZTE.
Inyup Kang, the head of Samsung's System Integrated Chip (System LSI), said that Samsung is negotiating with all OEMs and expects to announce a new customer for the Samsung Exynos mobile chipset in the first half of next year. Prior to this, Samsung’s High-end mobile processor Orion series (Exynos) is only available to Meizu a Chinese manufacturer.
According to China National Grid, Samsung Electronics' main business is divided into three segments: the consumer electronics division of specialized sellers, the IT and mobile divisions that sell handsets, and the semiconductor and display solutions division that sells chips. The storage chip business is the basis of Samsung's basic business. First, Samsung also made a lot of profits. Samsung also diversified its processor product line, not only to strengthen the mobile processor, but also to promote the development of logic chips such as image sensors and automotive chips.
In early April, Samsung Electronics released the preliminary Q1 report of 2018, which shows that Samsung Electronics’ operating profit will reach 15.6 trillion won (US$14.6 billion) in the first quarter, up 57.58% from 9.89 trillion won in the same period of last year. Revenue is expected to grow 18.69% year-on-year, from 50.5 trillion won in the same period last year to 60 trillion won. Among them, memory chip business meritorious service, analysts believe that the market rebound for demand for memory chips used in mobile phones and servers , may set a new high again for Samsung Electronics' profit this year.
Samsung's move may bring great pressure to Samsung's main competitor on mobile chips, Qualcomm said last month that affected by the ZTE event, the profit per share for the next quarter would decrease by 3 cents.
According to public information, ZTE has violated some U.S. sanctions against Iran and has been prohibited by the U.S. government from purchasing U.S. companies’ telecom parts and components within 7 years. However, Trump has recently indicated on Twitter that it is providing ZTE with fast services. Ways to restore business. US Secretary of Commerce Wilburrose also expressed on May 14th, Eastern Time, that he is willing to change the sales ban on Chinese mobile phone maker ZTE as soon as possible.
Inyup Kang stated that Samsung will continue to negotiate with ZTE regardless of the progress of trade negotiations between China and the United States. Analysts believe that the settlement of the problem has actually accelerated the pace, which will enable ZTE to diversify its suppliers.