According to reports from Chosun Daily, Qualcomm has decided to switch its 2nm chip production to Samsung Foundry, leaving TSMC behind. This shift comes amid rising costs and capacity constraints at TSMC, which have affected the operational plans of key clients like Qualcomm and Apple.

Based on a report from TrendForce, TSMC plans to raise its advanced chip production costs by 5% to 10% this year. Such increases could lead to higher smartphone prices, prompting Qualcomm to reconsider its supplier. Meanwhile, Apple has reportedly secured TSMC’s limited 2nm production capacity, forcing other clients to seek alternatives.

Qualcomm’s move is seen as a strategic attempt to manage costs and maintain competitiveness in the chip market. By collaborating with Samsung, Qualcomm hopes to benefit from lower prices and a dedicated supplier for its 2nm chips. Samsung, on the other hand, aims to recover from its previous market share losses and improve its yield rates to meet Qualcomm’s expectations.

Despite its setbacks, TSMC continues to dominate the global semiconductor foundry market with a 64.9% share as of 2024. The company plans to significantly expand its 2nm production capacity, from 10,000 to 80,000 wafers per month, by 2026. However, Qualcomm’s departure could challenge TSMC’s stronghold and shift market dynamics.

Qualcomm is expected to use Samsung’s 2nm technology for its Snapdragon 8 Elite series, marking a new chapter in their collaboration. Meanwhile, TSMC remains focused on supplying 2nm chips to Apple for the 2026 iPhone 18 Pro, utilizing its advanced N3P process for better performance and efficiency.

For Samsung, this partnership with Qualcomm represents a critical opportunity. As Chosun Daily highlights, this could be Samsung’s last chance to reclaim its position in the chip industry and attract major clients for 2nm production.

SOURCE: WCCFTECH | PHOTO: SMARTPRIX