Samsung Electronics Includes Qualcomm in Top 5 Customers for Q1 for the First Time

[Image source=Yonhap News]

[Asia Economy Reporter Kang Nahum] Qualcomm has been included for the first time among Samsung Electronics' top five customers in the first quarter of this year. This is interpreted as a result of securing a large-scale foundry (semiconductor contract manufacturing) order from Qualcomm.

According to Samsung Electronics' first-quarter business report disclosed on the 16th, the top five customers were Apple, Best Buy, Deutsche Telekom, Qualcomm, and Supreme Electronics, and these customers accounted for about 14% of total sales.

This is the first time Qualcomm has been included in the top five customers. Verizon, which had been among the top five customers until now, was excluded in the first quarter.

Qualcomm appears to have emerged as a major customer by entrusting the production of its mobile AP (application processor) 'Snapdragon 8 Gen 1,' released earlier this year, to Samsung Electronics' 4nm process. However, Qualcomm is known to have entrusted the follow-up product, 'Snapdragon 8 Gen 1 Plus(+),' to the Taiwanese foundry company TSMC.

As a result, the market speculated that Samsung Electronics' advanced 4nm factory's yield (the ratio of defect-free qualified products) improvement was delayed more than expected, causing customers to leave.

In response, Samsung Electronics attempted to ease concerns during the first-quarter earnings conference call on the 28th of last month, stating that "the 4nm process has currently entered the expected yield improvement curve, and market concerns are excessive."