The upcoming Snapdragon 8 Elite Gen 3 could be a game-changer, but it’s also expected to come with a hefty price tag. Qualcomm’s plan to release two versions of the chipset, similar to Apple’s A18 and A18 Pro, is due to the eye-watering costs of manufacturing wafers with the new 2nm process. These advanced wafers, produced by TSMC, could cost as much as $30,000 per unit, making it difficult for Qualcomm’s phone partners to afford the flagship variant.
In 2026, Qualcomm, along with other major chipset manufacturers, is expected to launch its first 2nm SoC, with the Snapdragon 8 Elite Gen 3 being the flagship model. But because of the exorbitant price of 2nm wafer production, Qualcomm is rumored to release two variants of the Snapdragon 8 Elite Gen 3. The more premium version, expected to be recognized as ‘SM8950’, will power the most advanced smartphones with top-tier performance. This variant will be for those who want the best of the best, cutting-edge technology in their devices.
On the other hand, the lower-tier version, identified as ‘SM8945’, will offer a similar flagship experience but with some compromises. This variant will have slightly lower clock speeds, reduced cache, and other trade-offs in performance. It’s akin to Apple’s approach with the A18 and A18 Pro, offering a high-end experience at a lower price point but with some sacrifices in specs.
Qualcomm’s decision to stick to a dual-sourcing approach with Samsung and TSMC is due to the high costs associated with 2nm production. While Samsung has struggled with improving its yields, it’s hoped that the company will ramp up production as it works to reach a 50% yield rate for its 2nm GAA (Gate-All-Around) process. If successful, it could open up more affordable manufacturing options for Qualcomm and other players in the smartphone market.
Ultimately, for manufacturers who lack the resources to push for their own in-house chipsets, the Snapdragon 8 Elite Gen 3 will be the go-to option, albeit in a less powerful form. This will likely lead to price increases for consumers or reduced profit margins for manufacturers as they balance the cost of the chipset with the market’s demand for the latest and greatest technology.