Samsung taps Infineon for chips

Following on Infineon (NYSE: IFX)’s recent announcement that their CEO will be stepping down at the end of this month, Samsung has announcement that they’ve tapped Infineon to supply the mobile chips for Samsung handsets. In doing so, Samsung will no longer be sourcing wireless components from Qualcomm (NSDQ: QCOM).

The South Korean company has purportedly chosen Infineon as their new mobile chipset supplier for their cheaper prices. Qualcomm has helped Samsung soar to ever higher market-share goals, but when push comes to shove, it’s all about the numbers.”While they’re more than 20 percent cheaper, Infineon’s chipsets are not inferior to Qualcomm’s in quality,” says a senior Samsung official. Perhaps that explains why Apple (NSDQ: AAPL)’s next-generation iPhone is said to rock an Infineon 3G chipset?

Whatever the back-story, we’re sure that Infineon will do quite well at Samsung’s right-hand.

[Update]
Samsung has not dropped Qualcomm as their chip supplier, but they’ve reportedly made the move to start using more of Infineon’s hardware in upcoming handsets.

[Via: Unwired View]