Qualcomm Sets Sights on Samsung Foundry as TSMC’s Reign Over Snapdragon Chips Comes to an End

TSMC’s Yield and Samsung Foundry: The Dance of Chip Production

When it comes to semiconductors, yield is a vital aspect of the production process. A foundry’s yield is the percentage of usable chips that can be diced from a silicon wafer. Typically, a 70% yield is considered good enough for mass production. In 2nm test runs, TSMC has had a yield of only 60%, raising questions about its ability to meet the demands of its clients.

TSMC’s Pricing and Capacity Issues

TSMC’s decision to hike prices for advanced chips by 5% to 10% this year and increase the cost of silicon wafers for 2nm by 50% to $30,000 might just be the straw that breaks the camel’s back for some of its clients. Higher prices and limited capacity could lead to a shift in production to other foundries, including Samsung.

Samsung Foundry: The Alternative

Samsung Foundry, while not without its own set of challenges, might be a viable alternative for companies looking to exit TSMC. With production yields a major concern, foundries like Samsung have to work hard to maintain their competitive edge.

The Importance of Capacity

TSMC’s limited 2nm capacity could be the biggest issue, especially considering that its largest client, Apple, has reserved most of TSMC’s initial 2nm capacity. TSMC plans to increase its 2nm capacity sharply in 2026, but for now, the lack of available capacity is likely to be a major concern.

Image: Samsung Foundry

Samsung Foundry could be facing its last shot to remain a viable business for Samsung. | Image credit-Samsung Foundry – Stunning rumor has Qualcomm moving Snapdragon production to Samsung Foundry from TSMC

Apple’s A19 Chipset Production

Despite earlier rumors, Apple’s A19 and A19 Pro chipsets will actually be produced using TSMC’s third-generation 3nm node (N3P), not the 2nm node. Higher costs might have convinced Apple to wait for the A20 and A20 Pro, which will power the iPhone 18 series in 2026.

Samsung Foundry’s Future

Attracting new 2nm business might be Samsung Foundry’s last chance to continue operations. Running multi-billion-dollar losses, Samsung is behind TSMC in market share, and its current financial situation is dire.