TSMC to Lose Qualcomm’s 2nm Chip Deal to Samsung
Due to its subpar management and yield ratio, Samsung lost a significant portion of its revenue to TSMC; nevertheless, it looks as though the company may recover. With Qualcomm apparently eyeing Samsung Foundry for all of its production needs, the Galaxy-branded smartphone manufacturer is now anticipated to acquire TSMC’s 2nm chip business. According to a recent source, Apple is afraid to use 3nm chips for the iPhone 17 Pro this year due to the high cost and limited production capacity. It is evident that the problem is pervasive and has impacted Qualcomm’s operational strategies as well.
The price of the phones may go up as a result of TSMC’s possible 5–10% price increase for its cutting-edge chips this year. Customers are already preparing to move to Samsung for their 2nm business because to growing costs, although it is unclear how the South Korean behemoth would respond to its reduced yields (via TrendForce). It’s possible that Qualcomm wants its next generation 2nm chips to be inexpensive, which will help Samsung regain its market share.
Additionally, since Apple, TSMC’s largest customer, has reserved 2nm chip manufacture at its facility, Qualcomm may have moved to Samsung Foundry. Although we recently discussed that the Cupertino company would have to wait to utilize TSMC’s products, this gives Apple an advantage over the rest of the industry. The iPhone 17 Pro models will use the supplier’s new N3P process while adhering to its 3nm node in order to address this.
TSMC intends to greatly expand its production capacity in 2026, while Qualcomm is stepping aside. As of 2024, the provider held a 64.9 percent market share in the worldwide semiconductor foundry; unless it resolves technical challenges regarding increased costs and limited manufacturing capacity, we believe the numbers will fall below the mark. During the trial production in 2026, the supplier plans to expand its 2nm capacity from 10,000 to 80,000 wafers per month.
For enhanced performance and battery efficiency, Apple may adopt TSMC’s 2nm chips in their 2026 iPhone 18 Pro models, which are built on the N3P technology. On the other hand, Qualcomm will continue to work with Samsung to produce the Snapdragon 8 Elite series of chips in the future. Although specifics are limited, we think the South Korean supplier will greatly increase its yields and costs. Additionally, this will enable Qualcomm to have a different supplier for 2nm chips than TSMC, fostering healthy competition and limiting costs.
