Qualcomm’s 2nm Snapdragon plans may stay tied to TSMC as Samsung price talks reportedly stall
Qualcomm’s next wave of flagship mobile chipsets could become even more expensive to produce, as talks with Samsung over 2nm manufacturing have reportedly failed to move forward due to pricing disagreements.
The company is already dealing with pressure in its chipset business, with the ongoing DRAM and NAND memory shortage affecting smartphone makers and their component budgets. Now, Qualcomm may have to rely heavily on TSMC’s advanced 2nm process for its upcoming Snapdragon 8 Elite Gen 6 Pro and Snapdragon 8 Elite Gen 6 chips, a move that could raise manufacturing costs significantly.
For Qualcomm, working with Samsung would have offered a potential way to reduce costs through a dual-sourcing strategy. Instead of depending on a single foundry, Qualcomm could split production between TSMC and Samsung, giving it more flexibility and potentially better pricing. However, the latest industry chatter suggests that Qualcomm and Samsung could not agree on production costs.
Samsung’s 2nm progress appears stronger, but pricing remains a challenge
In the past, Qualcomm leaned on TSMC for its most advanced Snapdragon chips because Samsung struggled with yield rates on cutting-edge semiconductor nodes. Yield is a critical factor in chip production because it determines how many usable chips can be produced from each wafer. Poor yields increase costs and make large-scale manufacturing less attractive.
This time, the situation may be different. Samsung’s advanced 2nm technology, including its SF2 and SF2P processes, is reportedly in a much better position than before. The development of the Exynos 2700 is being viewed as a sign that Samsung has made meaningful progress in stabilizing its 2nm yields and preparing the technology for commercial production.
That should have made Samsung a stronger candidate for Qualcomm’s next-generation Snapdragon chips. However, the sticking point appears to be price.
Samsung has reportedly increased prices for advanced chipmaking and foundry services by around 15 percent due to strong demand. Producing chips on next-generation nodes is extremely expensive, especially with the need for advanced equipment such as High-NA EUV machines from ASML. These tools are crucial for manufacturing leading-edge semiconductors, but they also add major costs to the production process.
Qualcomm reportedly wants lower pricing for 2nm production
According to the report, Qualcomm has been pushing for a price reduction from Samsung. However, Samsung may not be willing to offer a discount because the expected production volume is not high enough to justify lower pricing.
That detail is important. Foundries are usually more flexible on pricing when a customer commits to large production volumes. If Qualcomm’s 2nm Snapdragon orders are more limited than expected, Samsung has less incentive to reduce its margins, especially when demand for advanced manufacturing capacity remains strong.
Even if Qualcomm and Samsung were to eventually reach an agreement, the process would not be immediate. A formal supply contract could take months to complete, and TSMC is said to have already accepted Qualcomm’s initial 2nm orders. That means Samsung may now be positioned more as a backup manufacturing partner rather than a primary supplier for the Snapdragon 8 Elite Gen 6 series.
Memory shortages may affect demand for next-gen Snapdragon chips
One possible reason for lower 2nm production volume is the ongoing memory shortage. Smartphone brands using Qualcomm’s flagship processors also need to buy DRAM and NAND flash, and those components have become more expensive due to tight supply.
As a result, some device makers may slow down adoption of Qualcomm’s newest and most expensive flagship chips. Instead of immediately moving to the Snapdragon 8 Elite Gen 6 Pro or Snapdragon 8 Elite Gen 6, they may choose to continue using slightly older platforms to control costs.
This could explain why Qualcomm is expected to maintain a broader chipset lineup across both 2nm and 3nm technologies. Rather than pushing the entire market toward its newest 2nm silicon, Qualcomm may continue selling chips such as the Snapdragon 8 Elite Gen 5 at lower prices to keep revenue flowing while giving smartphone makers more flexible options.
TSMC remains the safer choice for Qualcomm
TSMC has become the preferred foundry for many high-end chip designers because of its strong track record with advanced nodes, consistent yields, and reliable production capacity. For Qualcomm, choosing TSMC for the Snapdragon 8 Elite Gen 6 Pro and Snapdragon 8 Elite Gen 6 may be expensive, but it also reduces risk.
Samsung, meanwhile, appears to have improved its technology position, but winning back major flagship Snapdragon orders may require more than better yields. Pricing, production volume, contract timing, and customer confidence all play a role.
There is also still some uncertainty around the situation. While pricing differences are said to be the main reason talks have stalled, it is possible that yield concerns or other manufacturing risks also influenced Qualcomm’s decision. Until more confirmed details emerge, the report should be treated with caution.
For now, Qualcomm’s next-generation 2nm Snapdragon chips look likely to remain closely tied to TSMC, while Samsung continues trying to prove that its advanced foundry technology can compete at the highest level. The outcome could have a major impact on future Android flagship phones, chip pricing, and the broader mobile semiconductor market.
