SEOUL – In a significant industry shift, Samsung’s upcoming Galaxy S26 series is set to utilize Snapdragon chips manufactured by Samsung’s own foundry, diverging from the traditional reliance on TSMC.
Immediate Impact
The decision marks a pivotal moment for Qualcomm, which has historically produced its Snapdragon chips through TSMC. This change could redefine manufacturing dynamics in the semiconductor industry, particularly for flagship devices like the Galaxy series.
Key Details Emerge
According to a report from Business Post, Qualcomm plans to release two versions of its Snapdragon 8 Elite sequel. One version will be manufactured using TSMC’s 3nm process, while the other will employ Samsung’s 2nm process. The Samsung-made chips will be exclusive to Galaxy devices, offering a unique selling point for the upcoming series.
40% – Current yield rate for Samsung’s 2nm process, indicating ongoing improvements.
Industry Response
The announcement comes as a major win for Samsung’s foundry, which has faced challenges with its 3nm yield. The shift in production is seen as a strategic move to bolster Samsung’s position in the competitive semiconductor market. Notably, Google recently transitioned its Tensor chip production from Samsung to TSMC, a move that was considered a setback for Samsung.
By the Numbers
- 2nm – Process technology for Samsung-manufactured Snapdragon chips.
- 3nm – Process technology for TSMC-manufactured Snapdragon chips.
Background Context
This development builds on Qualcomm’s strategy of producing special “For Galaxy” editions of its Snapdragon chips, which have been slightly overclocked versions exclusive to Galaxy devices. The chips’ production location, however, has remained unchanged until now.
Expert Analysis
According to industry analysts, this move represents a significant shift from Qualcomm’s traditional manufacturing strategy. “This could potentially increase Samsung’s competitiveness in the semiconductor space,” said Jin-ho Kim, a technology analyst at Mirae Asset Securities.
What Comes Next
Samsung’s Galaxy S26 series is expected to launch early next year, with the company already opening reservations for its latest foldable devices, the Galaxy Z Fold 7 and Flip 7. Customers who pre-order can receive a $50 credit and up to $1,150 in savings, along with other perks.
$50 – Credit offered for pre-ordering the Galaxy Z Fold 7 or Flip 7.
Meanwhile, industry experts warn that the success of Samsung’s 2nm process will be crucial for the company’s future in chip manufacturing. As the yield rate improves, Samsung’s foundry could attract more clients, potentially reshaping the competitive landscape.
The timing is particularly significant because Samsung aims to regain its footing in the semiconductor industry after recent setbacks. As the company continues to enhance its manufacturing capabilities, the impact on its market position will be closely watched.
