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The move comes after Samsung opted to use its
own Exynos processors for the recently launched flagship Galaxy
S6 devices instead of the Qualcomm Snapdragon 810, prompting the
U.S. firm to cut is financial outlook for the year.
Samsung and Qualcomm declined to comment on Re/code's report.
The report, dated April 20, did not say whether Qualcomm was
looking at other manufacturers for the 820 processor besides
Samsung.
The report suggests gathering momentum for Samsung's system
chips business, which investors and analysts expect will swing
to profit this year. That could be negative for Taiwan
Semiconductor Manufacturing Co (TSMC), which analysts say has
gotten the bulk of Qualcomm's orders for high-end chips.
Samsung's 14-nanometer manufacturing technology gives the firm
an edge over rivals such as TSMC, as smaller chips are more
energy-efficient and deliver better performance. Investors and
analysts say the superior technology will lead to more outside
orders for Samsung's contract manufacturing business and further
boost earnings.
Media reports say Samsung will make processors for Apple Inc's
new iPhones expected to launch later this year, and the firm
also recently added Nvidia Corp as a contract manufacturing
client.
(Reporting by Se Young Lee; Editing by Muralikumar Anantharaman)
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