TSMC’s dominance in semiconductor manufacturing continues, leaving Qualcomm with limited options for its next-generation Snapdragon processors.
According to sources like Digital Chat Station, Qualcomm is expected to exclusively rely on TSMC for its upcoming Snapdragon 8 Elite Gen 2 and Snapdragon 8 Elite Gen 3 chipsets in 2025 and 2026. While this decision ensures Qualcomm gains access to TSMC’s cutting-edge lithography, it also signals a significant challenge: increased production costs.
Snapdragon 8 Elite Gen 2: Sticking with 3nm, but with a Twist
The Snapdragon 8 Elite Gen 2, slated for release in late 2025, will reportedly use TSMC’s refined 3nm ‘N3P’ node—a step up from the current N3E technology. This upgrade is expected to bring better efficiency and performance gains, but it also solidifies Qualcomm’s dependency on TSMC, which will likely inflate wafer prices further.
In contrast, Samsung, a potential alternative for manufacturing, needs help with its 3nm GAA (Gate-All-Around) yields. Qualcomm would have preferred a dual-sourcing strategy to manage costs, but with Samsung unable to maintain reliability and scalability, TSMC remains the sole viable option.
Snapdragon 8 Elite Gen 3: Eyeing the 2nm Horizon
Looking ahead, the Snapdragon 8 Elite Gen 3 is rumored to be Qualcomm’s first 2nm chipset, likely debuting in 2026. If accurate, this timeline puts Qualcomm neck-and-neck with Apple, which also plans to adopt 2nm manufacturing for its processors around the same period. However, TSMC’s 2nm process is expected to come with even steeper costs, further pushing chipset prices higher.
What This Means for Qualcomm and the Industry
Qualcomm’s exclusivity with TSMC underscores leading chipmakers’ growing reliance on the Taiwanese foundry. While TSMC’s technological edge ensures Qualcomm’s Snapdragon processors remain competitive, the lack of alternatives—exacerbated by Samsung’s challenges—could lead to increased costs for smartphone manufacturers and, by extension, consumers.
Still, TSMC’s consistency provides security, allowing Qualcomm to prioritize performance gains in a fiercely competitive market. The question remains: how will the rising costs of wafer production and advanced lithography affect Qualcomm’s profitability and pricing strategy in the long term?
As always, these early details are based on industry speculation and leaks, so take them with a grain of salt until Qualcomm officially confirms its plans.
