With their placing every lithography tech to the test for the best chipset manufacturers, TSMC has far surpassed all other foundries, Samsung included, having attached themselves to the best. Qualcomm may also have no option but to depend on the Taiwanese semiconductor giant solely for its next two generations of chips, Snapdragon 8 Elite Gen 2 and Snapdragon 8 Elite Gen 3.
This move effectively excludes Samsung from the picture so, Qualcomm will be the one benefitting from the best technology available even if it comes at a premium.
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Qualcomm Might Be Forced to Exclusively Rely on TSMC for Snapdragon 8 Elite Gen 2 and Gen 3
Snapdragon 8 Elite Gen 2 to be manufactured on TSMC’s latest processes in 2025, 8 Elite Gen 3 for 2026: Tipster Snapdragon 8 Gen 3 Weibo tipster Digital Chat Station claims that Qualcomm will use TSMC’s advanced manufacturing processes for Snapdragon 8 Elite Gen 2 in 2025 and Snapdragon 8 Elite Gen 3 in 2026. It is expected that the Snapdragon 8 Elite Gen 2 will be fabbed on TSMC’s 3nm “N3P” node, which brings various enhancements over the currently utilized N3E. But a sure way to increase wafer costs is to stick to just one supplier.
Now rumors say the Snapdragon 8 Elite Gen 2 — expected to arrive in late 2024 — will cost even more than its predecessor. And while exact pricing figures are not out yet, the price tag is considerably higher by going with a single supplier — even if it incorporates the latest technology. Qualcomm or Samsung may help to reduce costs, but Samsung is looking to improve their 3nm GAA yield, so dual sourcing is a stopgap measure.
As for the next-gen Snapdragon 8 Elite Gen 3, Digital Chat Station suggests it may be the first Qualcomm chipset to rely on TSMC’s 2nm process as long as yields end up being stable. Despite being a frontrunner for new technology, it’s said that Apple won’t switch to 2nm chips until 2026 with the wafer costs extremely high. It proves that Qualcomm is keeping pace with its rivals. Though Digital Chat Station does not have the best track record, so take this with a grain of salt until we hear otherwise.
FAQs
Why is Qualcomm using only TSMC?
TSMC offers the best 3nm and 2nm technology for Qualcomm’s upcoming chips.
Will this make Snapdragon chips more expensive?
Yes, sticking with TSMC could increase production costs.
