Qualcomm Inc (QCOM)

[khemara_qc]

Samsung Electronics to Make Qualcomm Modem Chips
Updated Nov.14,2005 19:10 KST


http://english.chosun.com/w21data/html/news/200511/200511140012.html

Samsung Electronics to Make Qualcomm Modem Chips

Qualcomm is reportedly commissioning Samsung Electronics to make modem chips for code division multiple access (CDMA) cell phones. CDMA modem chips are a key component on which the U.S. company has a de-facto monopoly. Making them for Qualcomm will give Korea¡¯s biggest electronics firm a further edge in the global semiconductor industry.
Industry insiders on Monday said Qualcomm, a ¡°fabless¡± company in the industry jargon, decided to commission Samsung to make the modem chips. Fabless companies outsource the production of their chips.

Qualcomm and Samsung are said to be in the final stage of negotiating the contract and will announce the agreement soon. The companies would not confirm the decision, but a government official said, ¡°We will hear good news soon.¡±

If Samsung makes the modem chips worth US$3 billion in sales a year, it will deal a blow to Taiwan Semiconductor Manufacturing Company (TSMC) and United Microelectronics Corp (UMC) of Taiwan, the world¡¯s largest and second largest subcontractors for fabless firms.

([e-mail] )