Samsung Reportedly Uses AMD’s Graphics Chip Technology In Its New Smartphones

Samsung Electronics Co. has reportedly received the license from Advanced Micro Devices Inc. (AMD) to apply the US company’s graphics designs into its tablets and smartphones. Accordingly, AMD hopes to bring its technology to a new market, as well as helps make Samsung’s products more outstanding compared to ones from other smartphones manufacturers.

The agreement between Samsung and AMD will be only applied to mobile devices. Its estimated price is up to hundreds of millions of dollars. According to their agreement, Samsung has the right to use AMD’s designs for graphics chips and exploit the US chipmaker’s technology to improve the performance for its PC products.

One of the top targets of the South Korean tech company is to turn its products into ones which are more suitable for graphics-intensive apps like mobile games. As the second largest graphics cards manufacturer in the world, AMD hopes its products will bring more realistic experiences to users whenever they play games. The first position in this market now belongs to Nvidia Corp. Most of the current smartphones are using graphics made by Softbank’s ARM or Qualcomm Inc. Meanwhile, Apple designs chips on its own.

Under the leadership of CEO Lisa Su, AMD has made a lot of efforts to gain its market share in server computers and PCs. Along with the partnership with Samsung, the US chipmaker will have a chance to distribute its smartphone components to more markets, as well as take part in the huge market without investing directly.

Read more: AMD Will Supply Its Cloud Server Chips For Amazon And Defeat Intel In The Future

The potential of AMD’s market share gains and rebounding earnings is the major reason that helps its stock increase by about 50% in 2019. It comes as no surprise that the chipmaker has held the first position in the list of the Philadelphia Stock Exchange Semiconductor Index.