Stefan Mileschin

Samsung, Huawei supply majority of own modem chips

Qualcomm says two largest smart phone makers in the world supply most of their own wireless data modem chips.

A trial between the U.S. Federal Trade Commission and Qualcomm opened in California on Friday. The Regulators claim that Qualcomm engaged in anticompetitive patent licensing practices to preserve a monopoly on modem chips.

Qualcomm has argued its licensing practices follow long-established industry norms and that it charges broadly the same licensing rates that it had for many years before it ever started selling chips.

Bob Van Nest, an attorney representing Qualcomm showed that Qualcomm was not dominant in the world’s two biggest handset makers.

Van Nest’s said that Huawei internally sources 54 percent of the modem chips it puts in its devices and gets only 22 percent of its modems from Qualcomm, with the remainder coming from other unnamed makers. Samsung internally sources 52 percent of the modem chips it uses, with 38 percent from Qualcomm and the rest from other makers, according to the presentation.

Huawei and Samsung are both large diversified technology corporations that make many other products aside from premium-priced smart phones. Huawei’s HiSilicon unit supplies the chips for its high-end phones such as its Mate and P series.

Samsung’s chip division supplies processors and other components for many of its handsets and is also a dominant global supplier of memory chips beyond its own products.
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