Samsung diversifying smartphone supply chain

Samsung is diversifying its supply chain and has recently increased the use of core smartphone parts imported from Chinese and Taiwanese vendors. Samsung may consider using MediaTek’s Dimensity 9000 application processor as the brain of the Galaxy S series. This chip is expected to power Galaxy S22 FE and Galaxy S23 smartphone which is to be sold in Asia.

Businesskorea revealed that “Samsung will procure 3.5 million and 3 million OLED panels for Galaxy smartphones from BOE and CSOT respectively in the year 2022.” Yasuo Nakane, a researcher at Mizuho Securities in Japan said at the display conference hosted by a tech firm UBI Research.

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According to the sources Samsung has estimated its demand for 155.5 million OLED panels for Galaxy smartphones in 2022. Samsung Display will be responsible for providing 149 million units or 96% of the total volume. The rest of the three to four percent means 3.5 million and 3 million units will be procured from BOE and CSOT.

Samsung Electronics has so far used MediaTek chips for mid-range and entry-level smartphones or tablets. The flagship Galaxy S series used APs from Qualcomm and Samsung’s LSI Business Division.

MediaTek has recently come up and is seeking to expand in the global markets with its low and mid-range chips. Its recently launched Dimensity 9000 chip based on a 4nm fabrication process, has gathered awesome views.

As we all know that the Taiwanese chip makers are always known for their competitive prices, When comparing prices with others in the league. Samsung may be considering MediaTek to boost competitiveness in the smartphone market.

Talking about the present global scenario the supply chain is very unstable and it is very difficult to procure chips due to the competition in the microfabrication process. Samsung appears to be moving to add MediaTek to the list of its vendors. Looking like an effort to stabilize its supply chain.