NEWS  News  December 1, 2023  Reading time: 2 Minute(s)

Max (RS editor)

Samsung Loses Bid as TSMC Secures Deal to Mass Produce Qualcomm's Snapdragon 8 Gen 4 Chipset.

Samsung has reportedly missed a significant opportunity to partner with Qualcomm for the mass production of its upcoming flagship chipset, the Snapdragon 8 Gen 4. Instead, Taiwan Semiconductor Manufacturing Company (TSMC) has emerged victorious, securing the contract to utilize its cutting-edge 3nm 'N3E' technology for Qualcomm's new chip.

Qualcomm's initial plans to adopt a dual-sourcing strategy, incorporating both Samsung and TSMC for the Snapdragon 8 Gen 4, aimed to reduce production costs. However, Samsung's conservative approach to transitioning to the 3nm process has allegedly cost the Korean tech giant the orders, according to industry insights from TrendForce.

TSMC, aggressively pushing its 3nm process for 2024, is set to use the 'N3E' technology, a move expected to improve yields and wafer prices. This financial advantage likely played a role in Qualcomm's decision, making the transition to TSMC's technology less economically impactful.

Rumors surrounding Qualcomm's dual-sourcing strategy now lay to rest, leaving the chip manufacturer with a single supplier. Samsung's 3nm technology is not only criticized for its lower yields but is also considered inferior to TSMC's, as demonstrated by the success of previous Snapdragon 8 generations that utilized TSMC's foundry.

The Snapdragon 8 Gen 4 is poised to be Qualcomm's first smartphone System-on-Chip (SoC) featuring the company's custom Oryon cores, signaling a departure from ARM's CPU designs. This strategic shift, coupled with the move to TSMC's 'N3E' process, is anticipated to increase production costs, making the Snapdragon 8 Gen 4 more expensive than its predecessor. Manufacturers may face tough decisions, potentially compromising in key areas to maximize profits from their flagship smartphones.

The Snapdragon 8 Gen 4 holds promise as Qualcomm's competitive answer to Apple's A-series, but the choice of manufacturing partner and the shift to custom CPU designs may bring challenges in a market driven by performance, efficiency, and cost-effectiveness.

 COVER IMAGE BY WANGXINA/REVIEW SPACE