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DoCoMo & other companies to make Smartphone chips with Samsung

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Reports from a Nikkei business daily suggests that NTT DoCoMo, Fujitsu Ltd., NEC Corp and Panasonic Mobile Communication Co., are in talks and may join hands with Samsung to develop next-gen chips Smartphone chips that control wireless communications and signals. This will help them to reduce their dependence on Qualcomm Inc., which holds 80% of the market for such semiconductors, known as baseband chips.

DoCoMo is said to take the majority stake in the joint venture valued at about $389.6 million and headquarter it in Japan. The venture expects to use chips in the partners’ own Smartphone’s and also to sell chips to other handset manufacturers.

By taking part in this venture, DoCoMo expects to lower chip procurement costs and Samsung feels that this will help in development of next-generation telecommunication.

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