The
final time Samsung Foundry was struggling with the manufacturing of SoCs for smartphones was early in 2022 when yields for the 4nm Snapdragon 8 Gen 1 utility processor (AP) have been reported to be a low 35%. This share signifies that out of each 100 chips that may be produced from a silicon wafer, solely 35 handed high quality management (QC). Regardless that Samsung Foundry was constructing the chipset for Qualcomm, it was the latter agency that was paying for the faulty chips.
With Samsung Foundry’s poor yield determine, Qualcomm rapidly entered into talks to change to rival foundry TSMC. The Taiwan-based foundry was operating its 4nm course of node with a 70% yield which was twice what Samsung Foundry was capable of obtain. So Qualcomm, not involved in throwing away extra money, switched to TSMC to construct what was known as the Snapdragon 8+ Gen 1. And it has stayed with TSMC ever since. TSMC will manufacture the Snapdragon 8 Gen 4 AP.
Subsequent 12 months, each TSMC and Samsung are anticipated to start out mass manufacturing on the new 2nm node that can use smaller transistors permitting extra of them to suit insider a chip. TSMC will introduce its Gate-All-Round (GAA) transistors that enable the gate to come back into contact with the channel on all 4 sides lowering present leaks and bettering the drive present. Samsung Foundry already makes use of GAA with its 3nm manufacturing.
The Snapdragon 8 Gen 4 will likely be constructed by TSMC utilizing its 3nm node. | Picture credit-Qualcomm
However Samsung Foundry continues to have a problem with yield.
A supply advised Enterprise Korea simply how poorly Samsung Foundry is doing with its 2nm manufacturing. “Samsung’s GAA yield is round 10-20%, which is inadequate for each orders and mass manufacturing,” mentioned the supply. Together with its 3nm manufacturing, Samsung Foundry has a yield under 50% in line with the supply, whereas TSMC has a yield within the 60%-70% vary.
The distinction in yield has allowed TSMC to take 62.3% of the worldwide foundry market in comparison with Samsung Foundry’s 11.5%. And whereas Samsung has determined to stay with TSMC to construct the Snapdragon 8 Gen 4 AP for the flagship
Galaxy S25 collection,
it made this choice at an enormous value. Qualcomm is reportedly charging an arm and a leg for the chips which will likely be utilizing Qualcomm’s customized CPU cores. The Snapdragon 8 Gen 4 may value 25%-30% greater than the
Snapdragon 8 Gen 3 which may end result within the new flagship AP priced in a variety between $237.50 and $260.
Samsung doesn’t wish to pay these costs once more for the 2026 Galaxy S26 collection and would really like Qualcomm to return manufacturing of the Snapdragon 8 Gen 5 to Samsung Foundry. However for that to occur, Samsung Foundry should enhance the yield on its 3nm and 2nm manufacturing. And remember, the most important smartphone chipset vendor on the planet is MediaTek. Earlier this 12 months there was a rumor that
the corporate had supplied particular pricing to get Samsung to make use of MediaTek’s Dimensity chips for its flagship line.
If Samsung Foundry cannot enhance its yields and TSMC will get the contract to construct the Snapdragon 8 Gen 5, Samsung simply would possibly take MediaTek up on its provide.
