Qualcomm is making headlines with its anticipated Snapdragon 8 Gen 4, expected to debut later in the year with an increased price tag due in part to the development of its custom Oryon cores. Rising expenses have been amplified by the company’s choice to use the pricey 3nm ‘N3E’ process by TSMC for production. This could explain why there’s buzz around Qualcomm considering a dual-foundry production approach for its subsequent Snapdragon 8 Gen 5 chipset, potentially engaging both Samsung and TSMC in the manufacturing process.
The CEO of Qualcomm, Cristiano Amon, during a briefing in Taiwan, responded to an inquiry about a possible partnership with both foundries for future chipsets. As reported, Amon is evaluating a dual-sourcing strategy, which isn’t new for Qualcomm – a similar plan was on the cards for the Snapdragon 8 Gen 4. Unfortunately, due to Samsung’s lower yield rates, TSMC ended up being the sole producer.
Samsung has reportedly started working on its advanced 2nm GAA process, dubbed ‘Thetis’. Prior to this development, Qualcomm had approached both Samsung and TSMC for 2nm samples, aspiring to implement a dual-sourcing strategy for the launch of Snapdragon 8 Gen 5 slated for 2025. The challenge for Qualcomm will be to ensure uniform performance and efficiency across chipsets from both foundries to maintain their reputation.
Interestingly, the cost quotations from Samsung and TSMC for their respective versions of Snapdragon 8 Gen 5 could differ. Qualcomm might then cater to its phone manufacturing partners with varying shipment offerings, depending on whether they prefer the more expensive, possibly higher-performing version. This strategic shift to involve two foundries could also be beneficial for smartphone manufacturers that depend on Qualcomm’s SoCs, as it may prevent them from hiking prices for their flagships, consequently avoiding a downgrade of their devices’ hardware specifications.
As the tech industry watches, Qualcomm’s potential move towards a dual-foundry operation could significantly impact production dynamics and cost-efficiency for future high-end processors.
