TSMC Wins All Qualcomm Snapdragon 8 Elite 2 Orders for 2025

TSMC has reportedly outperformed South Korea's Samsung Electronics in advanced semiconductor manufacturing, securing all production orders for Qualcomm's Snapdragon 8 Elite 2 chips slated for release next year. According to technology news platform WccfTech, which cited South Korean media outlet The Bell, Qualcomm originally considered adding Samsung to the supply chain for this chip to reduce costs. However, issues with Samsung's 3nm Gate-All-Around (GAA) manufacturing process, particularly its low yield rates, led Qualcomm to exclusively choose TSMC for production.

TSMC is set to manufacture the Snapdragon 8 Elite 2 chips using its third-generation 3nm process (N3P), an upgraded technology promising higher performance and efficiency. Meanwhile, competition for Qualcomm's future flagship chip, the Snapdragon 8 Elite 3—expected to utilize a 2nm process and targeted for production in 2026—remains open. Although TSMC's 2nm trial production has achieved a 60% yield rate, Samsung still lags behind but has time to improve its process and vie for future orders.

Industry insiders suggest Samsung's limited 3nm production capacity, primarily reserved for internal use, prevented it from meeting Qualcomm's wafer volume requirements. As a result, Qualcomm is expected to maintain an exclusive partnership with TSMC for its flagship chip production through 2025.

Qualcomm's initial plan to diversify production sources failed to lower costs, which could force the company to raise prices next year. This move may further pressure smartphone manufacturers, potentially impacting their profit margins. Analysts note that competitive pricing from MediaTek's Dimensity 9500 chip could offer an alternative path for reducing costs in the market.

The Snapdragon 8 Elite 2 chip has already entered testing earlier than anticipated, with Qualcomm aiming to surpass the performance of Apple's upcoming A19 and A19 Pro chips, which are being developed for the iPhone 17 series. Both the Snapdragon 8 Elite 2 and MediaTek's Dimensity 9500 feature support for ARM's SME technology, which can enhance multi-core processing performance by up to 20%.