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Qualcomm Considers Samsung Foundry's 2nm Process for Future Snapdragon Flagship Processors

In the aftermath of the Snapdragon 8 Gen 1 issues, Qualcomm has predominantly shifted its new chip production to TSMC, veering away from Samsung Foundry. However, recent reports suggest that Qualcomm might consider employing Samsung Foundry's 2nm process for its upcoming flagship Snapdragon processors, potentially marking a return to Samsung Foundry for its premium chipsets.

While TSMC remains a dominant force in semiconductor chip manufacturing, Intel and Samsung Foundry are working to narrow the gap. The competition in the semiconductor industry, worth over $500 billion last year, has intensified, with companies seeking alternatives to TSMC for reasons such as supply chain diversification and geopolitical tensions between China and the USA.

Samsung Foundry is positioning itself as a potential second sourcing hub for chip clients. Although TSMC has showcased its 2nm process technology to major clients like Apple, AMD, and Nvidia, Samsung Foundry is reportedly offering competitive pricing for its 2nm technology, aiming to attract orders from the same clients. However, doubts persist about Samsung's ability to achieve high yields, especially for more complex chips like those used by AMD, Nvidia, and Qualcomm.

The 2nm chip race is on, with TSMC, Samsung, and Intel claiming readiness for mass production by 2025. TSMC and Samsung both assert their capability to produce 2nm chips by that time. Samsung Foundry sees an opportunity with 2nm and 3nm chips to close the gap with TSMC, its main rival. However, concerns about yield rates and potential design leaks pose challenges for Samsung Foundry, and clients remain cautious. Despite these challenges, the semiconductor industry's push for innovation and increased production capacity is driving companies to explore diverse supply chain options.


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