Qualcomm has made a strategic shift with its Snapdragon 8 Elite 2 by choosing Taiwan Semiconductor Manufacturing Company (TSMC) exclusively for its production. The decision marks a significant departure from their previous plan to use both TSMC and Samsung for manufacturing these high-end chips. Qualcomm’s reliance on TSMC’s advanced 3nm (N3P) process underscores the confidence in TSMC’s consistent and reliable yield rates, which have outpaced Samsung’s developing technology.
Initially, Qualcomm was set to employ a dual-foundry strategy, incorporating both TSMC’s state-of-the-art processes and Samsung’s SF2 technology. However, persistent production challenges and lower yield rates at Samsung’s plants prompted Qualcomm to pivot entirely to TSMC for the manufacturing of the Snapdragon 8 Elite 2.
This shift isn’t an isolated incident. Samsung has also missed securing contracts for other Qualcomm chips, such as the Snapdragon 8s Elite, slated for release in early 2025. This follows a pattern that began in 2021 when Qualcomm moved from Samsung to TSMC for the Snapdragon 8+ Gen 1, largely driven by similar concerns about production outcomes.
In response, Samsung is focusing its efforts on the Exynos 2500, developed with its latest 3nm process technology. Although this chip won’t feature in the upcoming Galaxy S25 series, it will likely make its debut in certain models of the Galaxy Z Flip 7. This introduction could serve as a critical moment for Samsung to demonstrate its prowess in cutting-edge chip production.
Looking forward, Samsung is preparing to fortify its position with a 2nm process expected to enter the market in late 2025. The Taylor Foundry plant in the United States, launching in 2026, will play a pivotal role in producing these advanced chips. There’s even speculation that Qualcomm has enlisted Samsung to create a prototype for the Snapdragon 8 Elite 3 using this precise node.
As the competition intensifies in the semiconductor arena, the coming years will be crucial for Samsung as it aims to re-establish itself as a leader in high-tech manufacturing.
