Qualcomm With TSMC And Samsung Together May Develop 3nm Chip

The world of technology is in a constant state of motion, with companies continuously pushing the boundaries of hardware advancement. In this race, Apple has once again taken the lead by rumoredly launching the highly anticipated 3nm chip. On the other hand, Qualcomm, a prominent player in the industry, has chosen to align itself with TSMC’s N4P process for its upcoming Snapdragon 8 Gen 3 release. However, it seems that Qualcomm is facing some challenges on its path to progress.

TSMC

Recent reports from Ming-Chi Kuo, an analyst at TF International Securities, reveal that Qualcomm had to lay off 415 workers due to sluggish smartphone sales. This setback might be one of the reasons why Qualcomm is not currently pursuing the more expensive 3nm chip development, especially when Apple seems to be monopolizing most of the new wafer shipments in the market. If Qualcomm were to work exclusively with TSMC, they would, without a doubt, end up paying more in the long run.

Nonetheless, Qualcomm still has alternative options to consider. One possibility is for them to utilize TSMC’s more cost-effective N3E process, which is another iteration of the 3nm technology. However, if they choose to rely solely on TSMC for chip production, it is likely that Qualcomm will incur higher costs. Ming-Chi Kuo suggests that Qualcomm might rethink its strategy and revive its partnership with Samsung, utilizing its own 3nm technology. In the past, Qualcomm had sought refuge in TSMC’s 4nm process due to its superior capabilities and favorable outcomes.

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It is understandable that Qualcomm might approach working wit h Samsung with caution, particularly given their current resource constraints. Nevertheless, Qualcomm might find itself compelled to collaborate with Samsung once again, with limited alternatives at its disposal. Future spikes in smartphone sales could potentially influence Qualcomm’s decision-making process.

Samsung has made noteworthy progress in the development of its 3nm technology, which might entice Qualcomm. The prospect of cost reduction could favor the Qualcomm-Samsung partnership, as it has been considered before as a means to alleviate financial burdens. While Qualcomm may be uncertain about the feasibility of re-collaboration with Samsung, market conditions and the need for cost-effective solutions might leave them with limited options. Only time will tell how Qualcomm’s plans will unfold, particularly if smartphone sales rebound and their course sways accordingly. Ultimately, Qualcomm’s choices will be shaped by market forces and the need to strike a balance between innovation and fiscal responsibility.

Mark
Gurleen Kaur

I'm a science graduate from the Ahmadu Bello University, Nigeria. My passion for writing has brought me to into the field of content.