TSMC has secured the exclusive mass production contract for Qualcomm's Snapdragon 8 Elite Gen 2, utilizing its advanced 3nm 'N3P' process. This move comes after Samsung reportedly failed to secure any orders from Qualcomm for this flagship mobile SoC.
TSMC's Superior Technology Secures the Win
Qualcomm, despite aiming to incorporate Samsung into its supply chain for cost reduction, has opted for TSMC due to Samsung's ongoing yield issues with its 3nm GAA process. TSMC's 2nm trial production has demonstrated a 60% yield rate, further solidifying Qualcomm's confidence in the Taiwanese foundry.
In a further blow to Samsung, they reportedly failed to secure production orders for the Snapdragon 8s Elite, a less powerful variant of the flagship SoC, according to a report from The Bell.
Snapdragon 8 Elite Gen 2 on TSMC's N3P Node
The Snapdragon 8 Elite Gen 2 will be manufactured on TSMC's improved 3nm 'N3P' node, which is expected to bring performance enhancements over the N3E variant. Qualcomm reportedly started testing the chipset earlier than usual in hopes of gaining a competitive edge against Apple's A19 and A19 Pro chips.
Potential Price Impact
The exclusive partnership with TSMC could potentially lead to increased prices for Qualcomm's chipsets in the future, impacting smartphone manufacturers. This is due to the loss of Qualcomm's ability to negotiate better wafer pricing through a dual-sourcing approach. A key factor in keeping costs down will depend on whether MediaTek can offer competitive pricing with the Dimensity 9500.
The Snapdragon 8 Elite Gen 2 and Dimensity 9500 will both support ARM's SME or Scalable Matrix Extension, which could lead to a 20 percent multi-core performance improvement.
