Samsung Electronics and Qualcomm have agreed to cooperate in the development of a fifth-generation (G) mobile communication chip with a 7-nanometer (㎚, 1-billionth of a meter) process. Earlier, Samsung Electronics made an atmosphere of reconciliation with Qualcomm, such as Qualcomm`s withdrawal from the Korea Fair Trade Commission (KFTC), which is in the process of filing a criminal fine of KRW 1.3 trillion.

Samsung Electronics has revealed that it will cooperate with Qualcomm to produce 5G semiconductor chips based on 7LPP (7LPP) process. The companies will jointly develop 5G modem chips and application processors (APs) with 7nm process.

Samsung Electronics plans to apply next-generation EUV (extreme ultraviolet) exposure equipment, especially from the 7nm process. Exposure equipment is a key device for drawing circuits on semiconductor silicon wafers, and EUV can significantly reduce the width of semiconductor microcircuits by using a shorter wavelength of 13.5 nm than visible light. Samsung Electronics applied the existing method without EUV until the 8-nanometer process.

Also, Samsung Electronics said that the 7nm process can reduce the area by 40% compared with the 10nm process and increase the concurrent performance by 10% and the power consumption by 35%. "We are continuing our strategic partnership with Qualcomm in the 5G field using EUV technology," said Vice President, Strategy Marketing Team, Samsung Electronics Foundry Business Unit, Bae Young Chang. "This cooperation will be an important milestone in the Samsung foundry business."

Meanwhile, the industry thinks that Samsung`s order for Qualcomm 5G chip foundry shows that the relationship between the two companies has been changed to reconciliation mode. Actually, Qualcomm decided to expand the cross-licensing agreement between Samsung and global patents last month. Besides, Samsung Electronics announced to the FTC that Qualcomm would be excluded from the "auxiliary participant" of the KRW 1.30 trillion (USD 1.30 trillion) charge for the cancellation of the fines. In December 2016, the FTC ruled that Qualcomm had high royalties on cell phone manufacturers, including a one-sided license, by refusing to license chip chips to competing chipsets makers such as Samsung Electronics and Intel and KRW 300 billion to the government. According to the FTC, Qualcomm has blocked the sale of `modem and integrated chipset` to Samsung Electronics for about 25 years with the right to use `standard essential patent` necessary for mobile communication.

According to industry sources, Samsung Electronics and Intel actively submitted evidence against Qualcomm to the FTC, which has changed the relationship between Qualcomm, Samsung Electronics and Intel.

However, Samsung Electronics has decided to expand its foundry business to the next-generation business after the memory semiconductor business, and it has been reconciled with a major customer, Qualcomm, which generates sales of several trillion won a year.

In the foundry business, Samsung Electronics has maintained long-term relationships with Samsung Electronics (SEC), which won orders for 14-nanometer semiconductor chips as well as 10-nanometer semiconductor chips for QUALCOMM. However, in the application processor business for smartphones, Qualcomm have shown uncomfortable relationship in the competition. According to market researcher Counterpoint Research, Qualcomm (42%), Apple (20%), Mediatech (14%), Samsung Electronics (11%) have biggest market share.

By Park Jung Il comja77@


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