ZTE now represents a hard situation for many non-US companies looking to do business. According to reports Samsung are now in talks with multiple OEMs across the globe and a deal will be concluded in the near future.
The semiconductor business is a driving force of Samsungs profits, but its Exynos mobile chipsets are rarely seen in other manufacturers devices, with the only external client being Meizu with the latest 15 Plus phone.
Among the manufacturers of smartphones, which Samsung is negotiating on the supply of processors, it appears ZTE. It said in January that it is providing automaker Audi with Exynos processor chips.
Qualcomm also faces competition from Chinese companies such as Huawei Technologies [HWT.UL], which uses its own processing chips called HiSilicon in its flagship smartphones.
"We are discussing with all OEM manufacturers", - said the head of division on development of a logic chip System LSI Inup Kahn, adding that for a new customer, switched to the Exynos chipsets, are expected to be announced in the first half of 2019. This would put Samsung in a direct competing position with its own vendor, Qualcomm that supplies the Snapdragon processor to Samsung.
ZTE seems to be Samsung's first likely client, keeping in mind ZTE's recent trouble. That's not a big surprise, given the fact that American companies have been banned from selling to ZTE for seven years.
Beleaguered Chinese networking equipment and smartphone maker ZTE is reportedly in talks with Samsung Electronics over sourcing the company's Exynos mobile microprocessors.
However, Samsung said in a statement that no deal of any kind with ZTE has been reached so far.