Samsung is preparing to enter into an incredible partnership with Huawei, something that no one thought could be possible, but something that would be extremely beneficial for both Asian companies. Huawei wants to use Samsung to overcome the sanctions imposed by the US against it through the new ban dictated by Donald Trump, and in return the Koreans will earn money not only from the sale of some products to the Chinese, but also from the sale of phones.
Huawei would be willing to "give up" part of its global market share in terms of smartphone sales just to have the opportunity to buy chips for telecommunications equipment from Samsung. We are talking about the production of processors using a 7nm EUV manufacturing process, Samsung now remaining the only viable solution for the Chinese after TSMC will no longer be able to produce processors for Huawei starting from September.
Samsung: The INCREDIBLE partnership with Huawei in the US Cause
Samsung could still produce chips for Huawei despite the US sanctions, and Huawei has no other solution, because a Chinese company that it saw as an alternative to TSMC does not have good enough technologies. Huawei earns more money from the sale of telecommunications equipment than from the sale of phones, so for it the production of premiums is much more important, and it would be willing to give up income from smartphone sales.
“Samsung and Huawei are considering a deal in which the South Korean giant would produce advanced chips for Huawei's 5G equipment, and Huawei would cede a substantial amount of its smartphone market share to Samsung. Mobile phones are Samsung's flagship business, but are a relatively small contributor to profits at Huawei, whose core business remains telecommunications equipment."
Samsung would have a lot to gain from here, and that's because the group earns good money from phone sales, but also from the production of chips for various partners. Even so, the partnership is a completely unusual one, but those from AT claim that this is currently being discussed between the two companies, even if for now no clear and final decision has been made regarding this partnership that few would have waited.
Samsung and Huawei are competitors in many markets, so a collaboration of this kind is not exactly something common and normal, but in situations of this kind, all kinds of solutions are resorted to.
