Qualcomm Deepens Samsung Partnership, Supplies Snapdragon Chips for Galaxy Phones

Qualcomm (QCOM) expanded its chip partnership with Samsung this week, putting Snapdragon silicon inside nearly every new device in the Galaxy lineup. The move ends Samsung's decade-long dual-chip strategy, where it sold some flagship phones with its own Exynos processor and others with a Snapdragon chip, according to a report from TheStreet.

Partnership Details

The new agreement means Samsung will use Qualcomm's Snapdragon processors in nearly all its flagship Galaxy phones, effectively ending the dual-processor strategy that lasted over a decade. Neither company disclosed the financial terms of the deal.

Context

Samsung had long used its own Exynos processors in some markets while relying on Snapdragon chips in others, such as the United States. This split aimed to reduce costs and leverage its internal manufacturing capabilities. With this expanded partnership, Samsung appears to be standardizing its devices around Qualcomm's chips.

What This Means for Investors

For Qualcomm investors, the deal signals increased demand for its processors and a strengthened relationship with one of the world's largest smartphone makers. For Samsung, it may reduce reliance on its own chips, potentially impacting its semiconductor division. The move could also intensify competition with Apple (AAPL), which uses its own processors in iPhones.