TSMC wins exclusive Snapdragon 8 Elite 2 contract as Samsung loses ground

Qualcomm has opted to rely solely on TSMC's third-generation 3nm (N3P) process for its upcoming Snapdragon 8 Elite 2, scrapping earlier plans to split production between TSMC and Samsung. This decision deals another blow to Samsung's semiconductor foundry business, which has been struggling to attract major clients lately.

At first, Qualcomm was looking into a dual-foundry setup for its high-end chips, planning to use both TSMC's N3P and Samsung's SF2 tech. However, ongoing problems with yield rates at Samsung's plants pushed Qualcomm to lean wholly on TSMC, whose 3nm tech has proven to be more reliable and further along in development.

This isn't just about the Elite 2 either—Samsung apparently missed out on orders for the Snapdragon 8s Elite too. That's a slightly less high-end chipset to launch in early 2025. It's part of a trend that kicked off back in 2021, when Qualcomm switched from Samsung to TSMC for the Snapdragon 8+ Gen 1, again over concerns about Samsung's yields.

On Samsung's side, the foundry division is now banking on the Exynos 2500, built using the company's 3nm process. Although this chip won't power the upcoming Galaxy S25 series, it's expected to appear in certain versions of the Galaxy Z Flip 7. That rollout could be a key chance for Samsung to show off its advanced manufacturing capabilities.

Looking ahead, Samsung is gearing up to compete more aggressively with its 2nm process, which is slated to go commercial in late 2025. Its Taylor Foundry plant in the United States, expected to come online in 2026, will focus on 2nm production. Word has it that Qualcomm has already tapped Samsung to develop a prototype Snapdragon 8 Elite 3 that might use this cutting-edge node.