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Samsung clinches $6.64 billion 5G supply deal with Verizon

Samsung clinches $6.64 billion 5G supply deal with Verizon

Posted September. 08, 2020 07:52,   

Updated September. 08, 2020 07:52


Samsung Electronics has signed a network supplies contract with Verizon, the biggest telecommunications company in the world. The deal is the largest export in size for South Korea’s telecommunications industry.

On Monday, Samsung announced that it will provide 5G telecommunications supplies worth 6.64 billion dollars (7.9 trillion won) to Verizon over the next five years. Clinching 5G supply deals with the major players including Verizon, AT&T, and Sprint, Samsung Electronics has become a core supplier of telecommunications equipment in the United States.

With Samsung’s foray telecommunications paying off in earnest after its success in semi-conductor and smartphone businesses, it is expected to boost sales and generate jobs in Korea as well as the South Korean electronics giant is producing telecommunication products in collaboration with 86 small-and medium-sized local companies.

“Ranked fourth in global 5G base station market share (16.6%), Samsung is chasing market leader Huawei (32.6%) fast,” said a business insider. “In addition to large-sized supply contracts including the Verizon deal, Samsung’s growth in 5G business is likely to gain further momentum as the anti-Huawei sentiment triggered by Sino-U.S. trade war is spreading to other countries such as the United Kingdom and India.

Dong-Il Seo dong@donga.com