Qualcomm has made a significant shift in its approach to the Snapdragon 8 Elite Gen 2, with rumors suggesting that Samsung has been dropped as its foundry partner for this chip. Instead, TSMC is now set to be the exclusive supplier for Qualcomm’s flagship SoC.
This change comes after initial reports that Qualcomm had been working on two different variants of the Snapdragon 8 Elite Gen 2, with one reportedly using Samsung’s 2nm GAA (Gate-All-Around) process, codenamed ‘Kaanapali S.’ However, as the Snapdragon Summit approaches, Qualcomm has reportedly decided to consolidate its efforts into a single variant, scrapping both the Samsung-made 8850-S and TSMC-made 8850-T identifiers.
Until recently, it was believed that Qualcomm might use both TSMC and Samsung as dual-sourcing partners for this chipset, potentially helping them manage costs. But the removal of these identifiers suggests that Qualcomm has reassessed its strategy. Now, the only version of the Snapdragon 8 Elite Gen 2 will be produced by TSMC using its third-generation 3nm process, known as ‘N3P.’ This marks another year in which TSMC will hold exclusive control over fulfilling Qualcomm’s Snapdragon 8 Elite Gen 2 orders, a move that could have price implications for consumers.
While the reasons behind this decision are still unclear, industry experts speculate that Samsung’s 2nm GAA process might not have met Qualcomm’s expectations for high yields. Historically, Samsung has faced challenges with yields on new manufacturing nodes, and the rumor mill suggests that its yields for the 2nm GAA process could have been below the 70% threshold required for mass production, leading Qualcomm to avoid risking production delays or defects.
For now, the Snapdragon 8 Elite Gen 2 will be produced solely by TSMC, with no mention of when or if Samsung will return to the fold. However, the shift to TSMC has its own costs: Qualcomm’s Reference Design chip, known as the QRD8850, is expected to cost a hefty $15,000 for testing purposes. This price could make it more expensive for smartphone manufacturers to develop and test their upcoming devices.
As the Snapdragon 8 Elite Gen 2 enters full-scale production, Qualcomm’s decision to consolidate production with TSMC raises new questions about the future of its relationship with Samsung and whether it will affect the pricing and availability of future Snapdragon chips.