Samsung Might Lose Snapdragon Flagship Manufacturing Business to TSMC

Going by the data shared by other reports, TSMC’s yield rate for the same 4nm node chips manufacturing is 70% which is double of what Samsung is delivering. Thus, because of Samsung’s failure to produce good quality chips at a faster rate, Qualcomm is facing issues with fulfilling orders. However, with TSMC, this might not happen.

Highlights

  • Samsung is one of the largest semi-conductor manufacturers in the world.
  • The yield rate was reportedly 35% for Samsung while making the Snapdragon 8 Gen1.
  • Not just Qualcomm, but even NVIDIA is reported to be moving away from Samsung to TSMS for manufacturing 7nm node chipsets.

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Samsung

Samsung is one of the largest semiconductor manufacturers in the world. The South Korean tech giant earlier won a big deal of manufacturing the Qualcomm Snapdragon 8 Gen1 flagship chipset using a 4nm node. However, due to the yield rate only being 35%, a report from theelec suggests that Qualcomm is looking for the Taiwan Semiconductor Manufacturing Company (TSMC) to build its chips.

The yield rate was reportedly 35% for Samsung while making the Snapdragon 8 Gen1. What this means is out of every 100 Qualcomm flagship chipsets that Samsung was making, 65 of those chips were not up to the quality to be used, and only 35 were good enough.

TSMC Yield Rate Reported to be 70%

Going by the data shared by other reports, TSMC’s yield rate for the same 4nm node chips manufacturing is 70% which is double what Samsung is delivering. Thus, because of Samsung’s failure to produce good quality chips at a faster rate, Qualcomm is facing issues with fulfilling orders. However, with TSMC, this might not happen.

Not just Qualcomm, but even NVIDIA is reported to be moving away from Samsung to TSMS for manufacturing 7nm node chipsets.

Qualcomm is said to launch a new Snapdragon 8 Gen1 Plus chip, which we might get to see in the second quarter. This new chip might be manufactured by TSMC and not Samsung like it was originally planned by the company. This will be a big loss for the South Korean giant as Qualcomm’s orders brought in a lot of revenues for the company. This will also affect the market positioning of Samsung in a negative manner when it comes to manufacturing chipsets.

Nothing’s been officially announced by the companies yet, but there is a strong chance that this will happen indeed. It’s not long from when Qualcomm will launch the + variant of the Snapdragon 8 Gen1 chipset, and we will get to see what’s really going to happen.

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