Qualcomm Rumored To Be In Partnership With TSMC And Samsung For The Development Of Its Upcoming 3nm Chip, Says Analyst

wccftech.com:

This year, only Apple is said to unveil the world’s first 3nm chip, while Qualcomm is said to stick with TSMC’s N4P process for the upcoming Snapdragon 8 Gen 3. However, one report from an analyst states that the San Diego company may have to rekindle its partnership with Samsung as it explores the option of dual-sourcing for the development of its own 3nm chip.

In his Medium blog post, TF International Securities analyst Ming-Chi Kuo believes that due to the significant expenses required for chip design, there are certain challenges being faced by Qualcomm. The chipset manufacturer recently laid off 415 employees due to a slumping smartphone demand, highlighting its struggles. The increased costs associated with 3nm chip development would also be one reason why the Snapdragon 8 Gen 3 will stick with TSMC’s 4nm process this year, while Apple racks up 90 percent of the cutting-edge wafer shipments.

Even if Qualcomm transitions to TSMC’s N3E process, which is the second iteration of the 3nm process, and is said to have a lowered production cost, sticking with one foundry means Qualcomm will need to pay the Taiwanese manufacturer a premium, which is likely why Kuo has mentioned that Samsung’s 3nm technology will also have a part to play in future chip development. Qualcomm has been reported to be exploring a dual-sourcing option involving TSMC and Samsung in the past for its future chipsets to save costs.

Samsung might become an option once more due to its progress in 3nm GAA technology, with Qualcomm previously said to be reviewing samples to see if shifting to this node is worth the effort. With the Snapdragon 8 Plus Gen 1 and Snapdragon 8 Gen 2, Qualcomm shifted to TSMC’s 4nm process due to the improvements in yields,