Qualcomm was previously rumoured to be investigating a dual-sourcing strategy in which it would use TSMC and Samsung foundries to mass build future chipsets, including the Snapdragon 8 Gen 4. Unfortunately, it appears that the San Diego has changed its mind and will only use TSMC for another generation, this time using the manufacturer’s N3E technology.
Using diverse manufacturers can provide enormous benefits, including substantial cost reductions for Qualcomm. TSMC’s N3E process will undoubtedly be costly for the smartphone chipmaker, but according to a tweet from Revegnus, it will have little choice. According to a previous tweet from the same person, not only will there be two variants of the Snapdragon 8 Gen 4, but they will both be mass produced on different foundries.
The Qualcomm Snapdragon 8 Gen 4 for Galaxy would have used Samsung’s 3GAP process, also known as 3nm GAA+, whilst the ordinary version seen in handsets not manufactured by the Korean giant’s facilities would have used TSMC’s N3E technology.
Qualcomm may provide TSMC orders exclusively in 2024 for undisclosed reasons, which could significantly hike the wafer price, with Qualcomm’s smartphone partners compelled to pay the balance. Revegnus has not revealed the explanation for this rumoured shift, however it could be related to Samsung’s next-generation process.
Previously, during its most recent quarterly earnings report, Samsung provided an update on its 3nm GAA process, indicating that yields remained stable, but the manufacturer may have encountered another hurdle. Given Qualcomm’s requirement for a substantial initial batch of Snapdragon 8 Gen 4 shipments, next-generation wafer yields must be more than sufficient in order to maintain a future cooperation. This was most likely one of the reasons Qualcomm switched to TSMC for its Snapdragon 8 Gen 2, and history appears to be repeating itself.
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