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Tuesday, May 27, 2008
Samsung to Buy Mobile Chips by Infineon

Samsung said on Tuesday it has started buying chipsets, a key part of handsets, from German chipmaker Infineon in a move to reduce its reliance on Qualcomm.

Samsung, the world's No. 2 mobile handset maker, had depended wholly on wireless technology firm Qualcomm, which holds patents for code division multiple access (CDMA) technology, for chipsets used in advanced third-generation (3G) mobile phones.

The move should give Samsung a better position in price negotiations with Qualcomm, and will likely have an enormous effect on negotiations by other Korean mobile phone makers who also source their chipsets from the U.S. supplier.

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