Samsung S Low Chip Yield Forces Qualcomm To Switch Suppliers

A report by The Elec (via SamMobile) states that Qualcomm is even asking TSMC to make a portion of its 4nm Snapdragon 8 Gen 1 chipset. This is despite Samsung Foundry being listed as the sole manufacturer of the chip when it was first announced. The decision barely comes as a surprise given that Samsung Foundry’s yield for the Snapdragon 8 Gen 1 was only 35%. What this also means is that Qualcomm will partner with TSMC for its upcoming 3nm SoCs. The report adds that the Exynos 2200 has an even lower yield than the Qualcomm chip. So Samsung clearly has a lot of thinking to do.

Samsung will spend over $100 billion over the next few years to strengthen its chip business

According to a source quoted by The Elec, Qualcomm executives and technical personnel were physically present at Samsung Foundry’s units to oversee the production of the Snapdragon 8 Gen 1. This explains why Qualcomm’s chip witnessed a better yield than Samsung’s own Exynos 2200. But Qualcomm’s decision to move to TSMC indicates that the yield troubles couldn’t be fully resolved. Last year, tech giant NVIDIA shifted orders of its new 7nm GPU to TSMC due to Samsung’s yield issues. Moreover, the global chip shortage has brought enormous pressure on suppliers to meet demand. The low yield further adds to the company’s woes. As for corporations like Qualcomm or NVIDIA, supply is everything. So they’re left with no option but to make alternate arrangements. Samsung previously said it would spend $100 billion over the next few years to expand its chip business. We could see some of that materializing soon as the company is reportedly going to produce 3nm chips starting later this year. TSMC, meanwhile, has cemented its position as the leader in the chip industry. In case you’re unaware, Qualcomm’s latest mobile chip, the Snapdragon 8 Gen 1, was announced in November last year. A few weeks later, the Motorola Edge X30 became the first smartphone to feature the flagship chipset. Samsung’s Galaxy S22 series also uses the same chipset in some markets, including the U.S.