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Samsung and Qualcomm AP Foundry Deal Delayed Over Pricing Dispute

11/09 09:14

Samsung Electronics' foundry division and Qualcomm have delayed an application processor manufacturing contract because of disagreements over unit pricing, according to The Bell. According to ChainCatcher, the talks have dragged on as the two sides have not narrowed the price gap, while no major technical issues have been reported and the 2-nanometer process under discussion has been assessed as relatively stable. Industry sources said Qualcomm AP production using Samsung's 2-nanometer process may be pushed to next year, and it remains unclear whether production can begin this year. Qualcomm previously outsourced advanced AP production to Samsung before 2021, and Samsung has been seeking to regain the business in recent years. People familiar with the matter said the delay makes it difficult for Samsung to produce APs for Qualcomm this year, and the two sides may revisit the issue with the next-generation product. Samsung is also said to be less willing than before to accept low-priced orders after securing strategic customers.

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