Qualcomm’s Potential Exclusivity Deal with TSMC for Snapdragon 8 Elite Gen 2 and Gen 3 Processors

In the ever-evolving landscape of semiconductor manufacturing, TSMC has significantly outpaced its competitors, including Samsung. The Taiwanese semiconductor titan has positioned itself as a leader, securing partnerships with major chipset manufacturers by offering them state-of-the-art lithography technologies. This development suggests that for at least the next two product generations, Qualcomm may have to rely solely on TSMC for its upcoming Snapdragon 8 Elite Gen 2 and Snapdragon 8 Elite Gen 3 processors. The implication is clear: Samsung is likely being sidelined in this crucial supply chain, which may benefit Qualcomm in terms of technological advancement yet could lead to increased costs.

Snapdragon 8 Elite Gen 2 and Future Transition to TSMC’s Next-Generation Node

Reliable sources such as the tipster Digital Chat Station have shared insights via Weibo regarding Qualcomm’s roadmap for the Snapdragon 8 Elite Gen 2 and Snapdragon 8 Elite Gen 3. For both 2025 and 2026 releases, Qualcomm plans to utilize TSMC’s manufacturing capabilities effectively. The Snapdragon 8 Elite Gen 2, expected to debut in late 2024, will be built on TSMC’s 3nm ‘N3P’ architecture, featuring significant upgrades over the existing N3E technology. However, choosing a single supplier like TSMC may lead to soaring wafer costs.

Recent reports indicate that the Snapdragon 8 Elite Gen 2 will carry a higher price tag than its predecessor, highlighting one of the challenges associated with dependence on a single manufacturing company that delivers cutting-edge technology. To mitigate these rising costs, Qualcomm could consider a partnership with Samsung. Unfortunately, Samsung’s struggles with its 3nm GAA yields complicate this potential strategy, leaving dual-sourcing as a less viable option.

Snapdragon 8 Elite Gen 2 and Snapdragon 8 Elite Gen 3

Outlook for Snapdragon 8 Elite Gen 3: A Leap to 2nm

Looking ahead, the Snapdragon 8 Elite Gen 3 may be Qualcomm’s debut in utilizing TSMC’s upcoming 2nm process, pending stable yield rates. Interestingly, even industry leaders like Apple are not expected to adopt 2nm chipsets until 2026, primarily due to the exorbitant wafer costs associated with this new technology. This places Qualcomm in a competitive position, potentially maintaining pace with their primary rival. That said, while Digital Chat Station provides some intriguing insights, it’s important to approach these rumors with caution until more concrete information surfaces.