The Snapdragon 8 Gen 4 is set to be mass-produced on TSMC’s 3nm process, but Samsung missed out due to its struggles with increasing chip yields. Relying on a single foundry like TSMC has led to a rumored price of $240 per unit for Qualcomm’s upcoming flagship chip. To stabilize costs, Qualcomm is now rumored to involve Samsung in producing the Snapdragon 8 Gen 5 next year. However, this comes with challenges.
Qualcomm’s strategy for Snapdragon 8 Gen 5
Qualcomm reportedly aims to dual-source the Snapdragon 8 Gen 5 using TSMC’s N3P process and Samsung’s SF2 technology (2nm GAA). While TSMC would handle the more powerful version, Samsung would produce the less capable variant. This approach could lower manufacturing costs if Samsung manages to improve its chip yields. Unfortunately, Samsung’s ongoing issues with yields, particularly on its 3nm GAA node, could jeopardize this plan.
Samsung’s struggle with chip yields
Samsung’s difficulties in achieving acceptable yields have long hindered its ability to compete with TSMC. Qualcomm’s plan to use Samsung’s SF2 node hinges on whether the Korean tech giant can resolve these issues. If not, Qualcomm may be forced to rely solely on TSMC, further increasing the cost of the Snapdragon 8 Gen 5.
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