What happens when a company gets tired of paying technology licensing fees? One of two things: they either drop out of the market or decide to compete and build their own tech. Samsung is opting for the latter in the case of 4G chips because the former choice would have them uncompetitive in future handset business. Let’s face it, as wireless data networks slowly lumber towards faster speeds, handset makers have to be prepared. Folks like Qualcomm know this. In fact, they count on it so they can charge a pretty penny for their wireless radio chipsets.
Samsung has enough of the Accounts Payable side of that coin, so they’re going to create their own chips to support WiMAX and LTE. They’ve been successful in the flash memory market and their ARM processor powers the iPhone, so surely they’ve got the mettle to create the silicon in this case. With the march towards LTE not likely to show results until late 2009 at the earliest, they’ve got time on their side too.