Samsung and Qualcomm Reunite in a Groundbreaking Move in Chip Manufacturing

The company Qualcomm, after several years, has decided to resume its collaboration with Samsung for the production of its Snapdragon SoCs. Chips manufactured by the Korean giant using the 2nm GAA process technology are set to enter the market very soon. Among the many companies engaged in contract manufacturing, we commenced negotiations with Samsung Electronics to outsource production using the latest 2-nanometer process. We have also completed the design works with the goal of swift commercialization

Not just any chip will be manufactured using the new process, but the top-of-the-line Snapdragon 8 Elite Gen 5 SoC. Currently, it is produced on TSMC’s 3nm standards. Additionally, reports indicate that Samsung has set a price for these wafers at $20,000, compared to TSMC’s $30,000 for wafers of the same process. Let’s recall that TSMC also recently launched it in mass production. When the new chips hit the market, this will allow for a direct comparison of Samsung’s new 2nm process with TSMC’s 3nm, as the same chip will be available but produced via different processes. By the way, the last time Samsung made chips for Qualcomm was back in 2022.

Industry Impacts and Future Prospects

Samsung recently unveiled their 2nm process technology, which is expected to lower energy consumption by 30%, improve performance by 15%, and have a 45% reduction in area when compared to the current 3nm processes. Qualcomm’s collaboration with Samsung on the 2nm process is likely driven by the cost-effectiveness and competitive pricing Samsung offers compared to TSMC, as well as potential supply chain security. Top executives in the industry have been emphasizing the importance of innovation in chip manufacturing to keep up with the high demand in sectors such as mobile, automotive, and data centers.