Qualcomm's Snapdragon 8 Elite Gen 2 Exclusively Produced on TSMC’s 3nm Process, Samsung Loses the Production Bid
Qualcomm’s upcoming flagship chipset, the Snapdragon 8 Elite Gen 2, will be exclusively manufactured on TSMC’s cutting-edge N3P process, signaling another blow to Samsung’s foundry ambitions. Despite earlier reports suggesting that Qualcomm was exploring dual sourcing to reduce costs, the continued yield challenges with Samsung's 3nm GAA process have left Qualcomm no choice but to place its full trust in TSMC.
Samsung’s Struggles and Missed Opportunities
Samsung was not only unable to secure Snapdragon 8 Elite Gen 2 orders but also lost the production bid for the mid-tier Snapdragon 8s Elite, which Qualcomm is expected to announce early next year. This failure underscores ongoing issues in Samsung’s semiconductor division, which has struggled to match the reliability and efficiency of TSMC’s advanced nodes.
Why Qualcomm Chose TSMC
TSMC’s N3P process is an improved variant of its already impressive 3nm node, promising higher yields and better energy efficiency. Reports from The Bell indicate that TSMC’s 2nm trial production has already achieved a 60% yield rate, cementing its position as the most reliable foundry partner for cutting-edge silicon.
With TSMC’s superior track record, Qualcomm can confidently compete with Apple’s upcoming A19 and A19 Pro, expected to debut in the iPhone 17 series. Moreover, ARM’s Scalable Matrix Extension (SME) support in the Snapdragon 8 Elite Gen 2 promises up to a 20% multi-core performance boost, potentially offering a significant leap in smartphone processing power.
The Pricing Challenge Ahead
The reliance on TSMC, however, comes at a cost. Without the leverage of dual sourcing, Qualcomm might face increased wafer prices, potentially pushing up smartphone costs for its partners. MediaTek’s upcoming Dimensity 9500, expected to be a competitive alternative, might offer some price pressure relief, but Qualcomm’s reliance on TSMC seems unavoidable for now.
