Local production of critical components - this is an opportunity not only to reduce the cost of product, but also to reduce delivery times. Realizing the importance of the Chinese market for the industry of smartphones, Qualcomm announced yesterday the launch of cooperation with a local contract manufacturer of chips within release SMIC 28nm processors Snapdragon.
Qualcomm acts not only as a customer but as a technology partner - the company will learn SMIC 28-nm process. Presumably, modern 28-nm processors Qualcomm will be closer to the Chinese manufacturers of smartphones and assembly enterprises of foreign brands operating in the region. However, TSMC is not far from the place of production of most smartphones. Most likely, Qualcomm by deepening cooperation with SMIC is trying to earn political dividends in the eyes of the Chinese government. Not so long ago the local authorities have launched an investigation against Qualcomm, accusing the company of abusing its dominant position in the market and artificially high prices. Qualcomm representatives said the company is cooperating with the investigation.
SMIC hopes that future generations of processors Qualcomm will be also produced at its facilities. This does not mean that cooperation with TSMC will be aborted, just Qualcomm will be a reliable and promising partner in mainland China. SMIC for cooperation with Qualcomm turn give access to advanced technological processes.