A new report suggests that the upcoming Snapdragon 8 Elite Gen 2, Qualcomm's next flagship processor, will be even more expensive to produce than its predecessor. This could negatively impact smartphone manufacturers' profits in 2026.
Following hints from a Qualcomm executive about the increasing cost of Snapdragon chips, the report from KiPost states that the Snapdragon 8 Elite Gen 2's price will further strain smartphone profitability. Although the exact price remains undisclosed, it's expected to exceed the estimated $240 cost of the current Snapdragon 8 Elite.
Despite the anticipated high cost, the Snapdragon 8 Elite Gen 2, which is already under testing, is expected to bring several improvements. One key upgrade could be the inclusion of Scalability Matrix Extensive (SME), a feature that enhances performance in complex workloads and significantly boosts single-core and multi-core performance. This feature is absent in the current Snapdragon 8 Elite and Dimensity 9400.
Qualcomm is likely to use TSMC's 3nm N3P node for the Snapdragon 8 Elite Gen 2, offering advancements over the current N3E process. There are also rumors about Qualcomm potentially involving Samsung in the production process to reduce costs, but this hinges on Samsung improving its 3nm GAA technology yields.
While these reports should be taken with caution, the rising costs of advanced chip manufacturing are undeniable, and the trend is likely to continue.
