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Qualcomm is planning to give the majority of its Snapdragon 8 Gen 3 orders to TSMC

The Snapdragon 8 Gen 3 could be obtained from TSMC and Samsung, with Qualcomm trying to cut production costs by partnering with both foundries. However, according to one study and one figure, in particular, it is probable that TSMC receives the majority of the company’s chip orders, with the benefit being its high 80 per cent yield rate of the 3nm process.

According to a report published by Business Next, the current 3nm yield rate is expected to be around 60-70 per cent, and in some cases, even more than 70 per cent, with TSMC formally having an announcement event, presenting its Fab 18 facility that would mass produce 3nm chips. 

TSMC’s current 3nm yield rate is between 75 and 80 per cent, which is impressive.

This number alone shows that Apple and Qualcomm may not have shipment issues with their respective A17 Bionic and Snapdragon 8 Gen 3 devices, both of which will purportedly be designed in the next-generation manufacturing process. In terms of Samsung, the Korean manufacturer may have been the first to unveil its 3nm GAA technology, but we previously noted that the company has a dismal yield rate of barely 20%.

Samsung was previously claimed to have seen advances by cooperating with US business Silicon Frontline Technology, but unless it becomes a competitive alternative to TSMC’s high yield rate, the Taiwanese manufacturer would likely fulfil the majority of Snapdragon 8 Gen 3 orders. According to those familiar with Samsung’s plans, the company’s wafer yield was barely 10%.

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Given the additional costs and complications associated with churning out wafers at this manufacturing process, Qualcomm may have to pay more for each wafer, implying that it may begin charging its smartphone partners a premium. In that situation, the Snapdragon 8 Gen 3 is likely to be slightly more expensive than the Snapdragon 8 Gen 2, raising the price of 2024 Android flagships.

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Nivedita Bangari
Nivedita Bangari
I am a software engineer by profession and technology is my love, learning and playing with new technologies is my passion.
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