Google brings Samsung 5G modem tech to U.S. market with new Pixel phone -sources
Reuters
Published Aug 25, 2021 06:45PM ET
Updated Aug 25, 2021 07:21PM ET
By Stephen Nellis and Paresh Dave
(Reuters) - Google will tap Samsung Electronics (OTC:SSNLF) Co Ltd to supply the 5G modem for its next flagship Pixel smart phone, sources familiar with the matter told Reuters, signaling the first win for the Korean firm in a U.S. market dominated by Qualcomm (NASDAQ:QCOM) Inc.
Earlier this month, Google disclosed that it has designed its own processor chip to power its new Pixel 6 and Pixel 6 Pro high-end phones, ending its complete reliance on Qualcomm, which will still supply chips for the lower-priced Pixel 5A.
Nikkei Asia earlier reported Samsung (KS:005930) will manufacture the processor for Google, a unit of Alphabet (NASDAQ:GOOGL) Inc. Two sources familiar with the matter told Reuters Samsung will also supply the 5G modem technology.
Samsung's move to provide the Pixel's modem technology is important because the Korean firm is one of only three companies in the world capable of making 5G modems that connect devices to wireless data networks. The others are Qualcomm, the market leader by a wide margin, and Taiwan's MediaTek Inc.
Samsung widely uses its Exynos modem technology in its own flagship smart phones in Asia and Europe. But it has long relied on Qualcomm to provide modems for U.S. versions.
That is in part because Qualcomm has a technology lead in a variant of 5G networking called millimeter wave, which provides the fastest speeds available with the new networks. To date, all smart phones released in the United States - including Apple Inc (NASDAQ:AAPL)'s iPhone - have used Qualcomm chips to tap millimeter wave networks.
Samsung told Reuters its new modem technology was capable of millimeter wave networking, and Google said its new phones will support millimeter wave networks as previous versions did, though neither company would comment directly on whether they are working together on the new Pixel.
Winning Google's Pixel business gives Samsung its first big chance to show off its chipmaking skills to the wider phone industry, which has long been wary of buying a key component from a fierce rival, said Kevin Krewell, principal analyst at TIRIAS Research. The Korean firm has never before sold its 5G modem chip technology to an outside company.
Get The News You Want
Qualcomm in a statement said it retained its technology lead because its millimeter wave technology relied on other chips in addition to the modem. "A modem is not enough to support millimeter wave in phones," Qualcomm said.
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.