Samsung Electronics Co. is set to equip its new premium Galaxy Tab S10 with MediaTek Inc.’s high-end Dimensity 9300+ application processor, replacing Qualcomm’s Snapdragon chipsets. The Galaxy Tab S10, expected to debut in October, marks a strategic shift for Samsung as it powers a Galaxy Tab series with MediaTek’s processors for the first time.
This move highlights Samsung’s intention to leverage its collaboration with the Taiwanese fabless company to negotiate better prices with Qualcomm. Industry analysts suggest this shift also reflects Samsung’s ambition to attract MediaTek as a client for its foundry operations, despite trailing behind Qualcomm and MediaTek in the application processor (AP) market with its Exynos brand.
Samsung’s reliance on Qualcomm’s Snapdragon chips has been prominent, with the Galaxy Tab S8 and Tab S9 models featuring Snapdragon 8 Gen 1 and Gen 2 processors, respectively. The new Dimensity 9300+, manufactured using TSMC’s 4-nanometer process, offers comparable performance to Qualcomm’s latest AP model but at approximately 10% lower cost. This cost-effectiveness is crucial as AP prices accounted for 18.1% of Samsung’s smartphone manufacturing costs in 2023, up from 12.8% in 2022.
MediaTek’s growth in the AP market, particularly amid US-China tensions and Huawei’s decline, positions it as a strategic partner for Samsung. The company recently completed performance verification of its LPDDR5X chip for use in MediaTek’s next-generation mobile AP chipset, signaling deeper collaboration.
This decision by Samsung underscores its strategy to balance its supply chain, reduce dependency on Qualcomm, and optimize production costs amidst rising AP prices.
