Ever since the Snapdragon 8 Gen 1 debacle, Qualcomm has switched most of its new chips to TSMC. Starting with the Snapdragon 8+ Gen 1 chips, the company has almost moved away from Samsung Foundry to TSMC, but it could come back to Samsung Foundry in the future, and that too for its flagship Snapdragon chips.
Snapdragon 8 Gen 5 could use Samsung's 2nm process technology
A new report claims that Qualcomm could use Samsung Foundry's 2nm (SF2) process for the fabrication of its future flagship Snapdragon processors. While TSMC is the undisputed leader in the semiconductor chip manufacturing segment, especially for high-end smartphone, PC, and server chips, Intel (IFS) and Samsung Foundry are trying to close the gap. All three chip fabricators are trying to launch their 2nm class process nodes within the next couple of years. Since Samsung was the first to make 3nm chips and the first to use a new design called MBCFET (Multi-Bridge-Channel FET), the company believes that the transition to 2nm would be easier for it compared to its rivals.
The global semiconductor chip fabrication segment pulled in over $500 billion last year, and every company wants a piece of that pie. While 2nm, 3nm, and other such terminologies no longer indicate the actual size of a transistor, any company that brings a new technology first to the market stays well placed to get orders from chip clients like AMD, Apple, MediaTek, Nvidia, and Qualcomm. Since the start of the AI revolution last year, more companies are trying to get as many chips as they can to stay on top of the game. They also don't want to rely solely on a single chip foundry, especially looking at the production capacity, supply chain, and China-USA geopolitical tensions. So, firms like AMD, Nvidia, and Qualcomm are trying to find alternatives to TSMC.
Samsung Foundry is well-placed to become chip clients' second sourcing hub. While TSMC has already showcased its 2nm process technology to Apple, AMD, and Nvidia, according to a Financial Times report, Samsung Foundry is said to be offering cut-price versions of its 2nm technology to the same clients, including Nvidia, to attract some of their orders. While Samsung says that it has an advantage in the 2nm and 3nm space, people are still doubtful if the company can create highly complex chips using those processes with a high enough yield (percentage of wafer that passes quality tests).
Intel, Samsung, and TSMC claim they will be ready for mass production of 2nm chips by 2025
TSMC said that it can start making 2nm chips by 2025, while Samsung Foundry also claimed the same. IFS (Intel Foundry Services) claims that it can start the mass production of 18A (1.8nm class) chips by the end of 2024. However, doubts remain over the performance of chips made using Intel's technology. Experts believe that while the race to make smaller chips has intensified, the returns in performance have plateaued, and newer technologies may not be as attractive to clients anymore. Samsung Foundry sees an opportunity with 2nm and 3nm chips to close the gap with TSMC, its biggest rival.
Although Samsung Foundry insists that its yield rates have improved, insiders claim that the yield of simpler chips made using the 3nm process has barely reached 60%. It means if it is used to make more complex chips, like the ones from AMD, Nvidia, and Qualcomm, it will likely result in a further drop in yield. Lee Jong-hwan, professor of system semiconductor engineering at Sangmyung University in Seoul, says that clients have concerns about design leaks from Samsung's foundry division to the chip design division (System LSI). However, customers' interest in diversifying their supply chain could benefit Samsung Foundry in the coming years.
