The Snapdragon 8 Gen 4 will be entirely produced using TSMC’s advanced 3nm process, highlighting a significant setback for Samsung, which missed a golden opportunity due to its failure to boost chip yields. This reliance on a single foundry, however, has led to a steep price increase, with Qualcomm’s upcoming flagship SoC expected to cost $240 per unit. To control these escalating costs, Qualcomm needs to incorporate another player into the process.
In a twist, new rumors suggest that the Snapdragon 8 Gen 5 is set to employ both TSMC’s N3P and Samsung’s SF2 technologies next year, albeit with certain conditions. Qualcomm is keen on involving Samsung, as even a limited batch of Snapdragon 8 Gen 5 units produced by Samsung could drive down costs. Yet, the real challenge lies in Samsung’s ability to achieve satisfactory chip yields—a hurdle that has long troubled the tech giant.
Historically, Qualcomm has eyed a dual-sourcing approach, leveraging both TSMC and Samsung to produce its Snapdragon chipsets. Unfortunately, such attempts failed with the Snapdragon 8 Gen 4. Reports now indicate that Qualcomm is channeling its resources to ensure the Snapdragon 8 Gen 5 does not meet the same fate. According to a rumor circulating on DC Inside and shared by @negativeonehero, the Snapdragon 8 Gen 5, designated as ‘8850,’ will be dual-sourced from both TSMC and Samsung.
The more robust variant will be mass-produced using TSMC’s N3P process, while the less powerful version might be fabricated using Samsung’s SF2, also known as 2nm GAA technology. This business strategy hinges on Samsung’s ability to improve its chip yields, a persistent issue that has seen many companies pivot to TSMC. Qualcomm sees value in involving Samsung; manufacturing even a small portion of Snapdragon 8 Gen 5 units on the SF2 node could substantially lower production costs. The 2nm GAA process is especially advantageous, offering superior power efficiency at higher density. However, these benefits will remain unrealized if Samsung fails to overcome its yield problems.
Reportedly, Samsung is also facing difficulties with its 3nm GAA node, intended for the Exynos 2500. The ongoing struggles cast doubt on Samsung securing any orders for the Snapdragon 8 Gen 5 unless significant improvements are achieved swiftly.
