[News] Samsung’s Memory and Smartphone Divisions Reportedly Eye Collaboration with TSMC and MediaTek

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Taiwan’s Commercial Times, citing industry sources, reports that Samsung’s memory and smartphone divisions are considering outsourcing orders to Taiwanese firms, including TSMC and MediaTek.

Competition in the global semiconductor industry remains fierce. In the foundry sector, TrendForce data shows TSMC retained its top spot in Q2, with quarterly revenue of $20.82 billion and a 62.3% market share. Samsung, ranked second, saw its quarterly revenue grow 14.2% to $3.83 billion, with an 11.5% market share.

The Commercial Times reports that Samsung’s major business lines have recently underperformed expectations, with its foundry and memory divisions facing stiff competition from TSMC and SK Hynix. Its smartphone business has also been plagued by the “green line issue.” To reverse the tide, Samsung is looking to collaborate with Taiwanese manufacturers.

According to Commercial Times, due to yield issues with the Exynos 2500, it remains unclear whether the chip will power Samsung’s smartphones. In addition to its partnership with Qualcomm, Samsung is reportedly in talks with MediaTek to use its Dimensity chips for next year’s flagship S-series phones as a second source.

Benefiting from this shift, Novatek is reportedly well-positioned to gain orders from Samsung, thanks to its competitive pricing. Novatek, which already supplies Apple with iPhone OLED DDIC chips, has proven its technical capabilities to major global brands and could become a cost-saving option for Samsung.

Meanwhile, following Micron’s establishment of a DRAM facility in Taiwan, SK Hynix has also expressed interest in deepening its collaboration with TSMC. Samsung’s memory business president, Jung Bae Lee, has signaled a willingness to explore future partnerships with TSMC. Industry insiders, cited by Commercial Times, note that if AI chips use ASIC paired with HBM, the base die will require advanced manufacturing, making TSMC the top choice for memory firms.

(Photo credit: Samsung)