Qualcomm is reportedly considering shifting its 2nm chip production to Samsung Foundry, potentially due to higher costs and limited production capacity at TSMC (Taiwan Semiconductor Manufacturing Company). This move would mark a significant change in the chip manufacturing landscape.
TSMC's Rising Costs and Capacity Issues
TSMC is reportedly increasing prices for its advanced chips by 5 to 10 percent this year, which could impact the prices of smartphones and other devices. Additionally, Apple is believed to have reserved most of TSMC's 2nm production capacity. This has reportedly influenced Qualcomm's decision, as they aim for more cost-effective and readily available 2nm chips.
Qualcomm's potential shift to Samsung could also help the South Korean giant regain lost market share. While Samsung has struggled with yield issues in the past, this partnership presents an opportunity to improve its manufacturing capabilities.
Apple's Influence and Future Plans
It is believed that Apple's 2nm chip production reservations at TSMC have significantly influenced Qualcomm's decision to move to Samsung. Although, Apple will reportedly stick with TSMC's 3nm N3P process for its 2025 iPhone 17 Pro models, they are expected to adopt 2nm for the 2026 iPhone 18 Pro models.
Meanwhile, Qualcomm is expected to utilize Samsung Foundry for manufacturing its future Snapdragon 8 Elite series of chips. While details are scarce, Samsung is expected to significantly improve its yields and lower production costs, which could create healthy competition and ensure more cost-effective chip solutions for Qualcomm.
According to South Korean media, this could be Samsung's last chance to attract clients for its 2nm production to remain competitive. More details about Qualcomm's potential move from TSMC to Samsung are expected to surface soon.
