Samsung Electronics Co. has lost Qualcomm Inc.s 7-nanometer (nm) chip order to Taiwan-based Taiwan Semiconductor Manufacturing Company (TSMC). The latest blow would impede the leading Korean chipmakers latest efforts to expand its dominance in pure-play foundry business.
According to industry sources on Sunday, American wireless chip giant Qualcomm was said to have asked TSMC, the worlds largest contract chipmaker, to produce 7nm chips that it is planning to launch around the end of this year. Samsung Electronics has competed against TSMC that also produces application processor for Apple Inc.s iPhones in winning the order.
As of 1:54 p.m. on Monday, shares of Samsung Electronics stand at 2,265,000 won ($2,011.37), down 40,000 won or 1.74 percent from the previous session.
Samsung Electronics reported defeat by its Taiwanese rival in the 7nm chip order comes after it has faced a delay in developing the related fabrication technology. After TSMC lost in the previous competition to win an order to supply 10nm chips for Qualcomm to Samsung Electronics, TSMC has accelerated its efforts to develop the 7nm chip technology and successfully won the latest order, according to sources. The Qualcomms 10nm chip order makes up nearly 40 percent of Samsung Electronics5 billion won foundry revenue.
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