Samsung starts buying Infineon mobile chipsets

28/05/2008 06:29

SEOUL (Reuters) - Samsung Electronics Co Ltd said on Tuesday it has started buying chipsets, a key part of handsets, from German chipmaker Infineon in a move to reduce its reliance on Qualcomm Inc.

Samsung, the world’s No. 2 mobile handset maker, had depended wholly on wireless technology firm Qualcomm, which holds patents for code division multiple access (CDMA) technology, for chipsets used in advanced third-generation (3G) mobile phones.

"In order to raise cost competitiveness, we have been supplied by Infineon," Samsung spokesman Kwak Bum-joon said by telephone. "We have been diversifying parts supply sources."

Kwak made the comment after the Chosun Ilbo daily reported that Samsung had developed a mobile phone model equipped with Infineon’s chipsets in April and exported the model to Europe since early this month.

The newspaper said Samsung’s move would help give it leverage in price negotiations with Qualcomm and likely have a substantial impact on other domestic mobile phone makers.