Samsung Will Make New 5G Chips Based On Advanced Technology

By Kunwar Kunal

| Published: Thursday, February 20, 2020, 11:25 [IST]

Samsung has recently won a 5G chip contract from Qualcomm. As per the contract, the company will make new Qualcomm 5G chips based on the most advanced technology. With this move, the company is likely to collect even more revenues. Samsung is the world's second-biggest chipmaker, and it collects maximum revenue by selling its highly-engineered chipsets around the world.

Samsung Will Make New 5G Chips Based On Advanced Technology

The Korean giant will manufacture a few Qualcomm X60 advanced chips featuring 5G connection. These chips are going to be based on Samsung's 5nm process, as per the reports. Since the process undergoes 5nm layering, the chips will be smaller. And, hence they will be more power-efficient that lacked in previous chipsets.

The contract for 5G chips which Samsung won will be a key factor in acquiring a robust market share against rival, TSMC (Taiwan Semiconductor Manufacturing). Not to forget, even TSMC has started to design 5nm chipsets from this year. But on a comparative aspect, TSMC's market share stood to 52.7% by the end of 2019, much higher than Samsung's 17.8%, in terms of the chip manufacturing and selling.

Since Samsung has won the contract over designing 5G chips, its share is likely to surge. On the other side, even TSMC's market will rise as it will introduce 5G chips in the market. At this point, it will be very interesting to see how Samsung will fare to keep itself on top in terms of manufacturing and selling the highest number of 5G chips than TSMC.

Qualcomm announced that its X60 chip design samples will be made available to the consumers. But, the company didn't mention yet whether Samsung or TSMC would be enrolled for the manufacturing of first batches for the chipsets. Earlier, it was a Taiwanese firm that produced the highest number of 7nm chips than expected at a faster rate, thereby winning Apple as its customer.

Even for the year 2020, TSMC is confident in manufacturing the maximum number of 5nm chips than the anticipation in only the first half. With this move, the firm is going to boost its revenue by 10% in 2020.

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