Qualcomm Might Have Little Choice But To Give Exclusivity To TSMC For Its Upcoming Snapdragon 8 Elite Gen 2 And Snapdragon 8 Elite Gen 3

TSMC has left all other foundries in the dust, including Samsung, and has established a fortified position where it has secured the top chipset manufacturers by providing them access to cutting-edge lithography. It appears that for the next two generations, Qualcomm might have little choice but to place orders exclusively with the Taiwanese semiconductor giant for its Snapdragon 8 Elite Gen 2 and Snapdragon 8 Elite Gen 3 too. The latest rumor pretty much means that Samsung is out of the picture, and while that ensures that Qualcomm will leverage the best possible technology, it will come at a price.

Snapdragon 8 Elite Gen 2 will not switch to 2nm next year, as Qualcomm will transition to TSMC’s next-generation node for the Snapdragon 8 Elite Gen 3

The tipster Digital Chat Station has reiterated on Weibo that for 2025 and 2026, when Qualcomm unveils the Snapdragon 8 Elite Gen 2 and Snapdragon 8 Elite Gen 3, respectively, the San Diego firm will take advantage of TSMC’s manufacturing processes. For next year, we should see the chipset maker introduce the Snapdragon 8 Elite Gen 2 on the 3nm ‘N3P’ variant, which should bring in various improvements over the existing N3E. The only problem is that sticking with one supplier will shoot up the price of the wafers.

Recently, we reported that the Snapdragon 8 Elite Gen 2 launching late next year will be even more expensive than the Snapdragon 8 Elite, and though an estimated figure was not mentioned, these are the pitfalls when you rely on one company that actually happens to deliver a cutting-edge architecture. The only other option for Qualcomm is to ally itself with Samsung to reduce its chipset costs. The problem here is that the Korean foundry is facing immense difficulty in improving its 3nm GAA yields, otherwise a dual-sourcing approach would always be on the cards.

As for the Snapdragon 8 Elite Gen 3, the tipster says that it will likely be the first time that Qualcomm will switch to TSMC’s 2nm process, assuming the company has a stable yield count. Even Apple, which has a habit of wanting to have a lead against the competition, is not expected to transition to 2nm chipsets until 2026 due to the insanely high wafer costs, so it appears that Qualcomm is keeping pace with its rival. Bear in mind that Digital Chat Station does not have the best track record out there, so it is best to treat this rumor with a pinch of salt until we have more concrete evidence.

News Source: Digital Chat Station