In an expected turn of events, Qualcomm has once again opted for Taiwan Semiconductor Manufacturing Company (TSMC) over Samsung Foundry for the production of its highly anticipated Snapdragon chipsets. Despite recent improvements to its manufacturing processes, Samsung struggled to secure this key contract amid ongoing concerns regarding its yield rates.
After a challenging year marred by low yield rates, Samsung Foundry has made commendable strides in stabilizing its 3 nm production line and is currently working on developing 2 nm chipsets. Although they have ambitious plans to create compact yet powerful chips, the allure of Qualcomm's next flagship system-on-chip (SoC) has proven elusive.
Given the high demand for Snapdragon chipsets in flagship smartphones, Qualcomm's decision to choose the more reliable TSMC is understandable. Despite Samsung's competitive pricing and attractive discounts, the foundry's recent concerns around manufacturing consistency were enough for Qualcomm to play it safe.
As Samsung Foundry continues to improve its manufacturing capabilities and successfully fulfills orders from other clients, it may find itself in a better position to bid for future chipset contracts, potentially including the upcoming Snapdragon 8 Elite Gen 3.
The upcoming Galaxy S25 Ultra is expected to feature a Snapdragon 8 Elite chipset. | Image credit — PhoneArena
Furthermore, reports have emerged indicating that the anticipated Snapdragon 8 Elite Gen 2 will experience a notable price increase, causing some discontent among Samsung's partners.
