Samsung was once a major player in the contract chip manufacturing space. It used to make semiconductor chips (application processors and GPUs) for several big-name brands, including Apple, Nvidia, and Qualcomm. However, Samsung has recently failed to bag orders from those brands.
Specifically, it failed to get any contract for its 3nm chips. According to a report, Samsung Foundry hoped to get the deal to manufacture Qualcomm's upcoming 3nm chip, but it was unable to do so.
Samsung reportedly failed to bag order to make Qualcomm's Snapdragon 8s Elite chip
According to a report from The Bell, Samsung Foundry is facing difficulties in securing chip orders from clients. Despite being the only brand other than TSMC that can make chips using advanced process nodes (7nm or better), it has failed to win new chip orders.
It failed to bag any orders to make chips using its 3nm process node. This is due to the perception that its 3nm process node doesn't have enough yield to make millions of chips. And it is correct to an extent, as it has failed to increase the yield to a level where it can make its own Exynos 2500 chips for the Galaxy S25.
Yield is the ratio of good chips (chips that pass the quality tests) out of all the chips made.
The report claims that Qualcomm's next flagship chip, the Snapdragon 8 Elite Gen 2 (tentative name), will be made by TSMC using its third-generation 3nm (N3P) process. The chip will be announced in the second half of 2025. Samsung Foundry attempted to win this order but failed, reportedly due to yield-related issues.
Apparently, Samsung Foundry negotiated with Qualcomm to make the Snapdragon 8s Elite, which is a cut-down version of the company's current flagship chip. However, that attempt failed as well. And that chip will likely be made by TSMC as well.
Samsung Foundry needs to shed the perception that it can't make enough chips with its 3nm process nodes. For that to happen, it needs to make its own chips in enough numbers and use them in its high-end phones. A recent report claimed it will equip the Galaxy Z Flip 7 with the Exynos 2500.
If the company succeeds, it could win some deals to make 3nm chips from MediaTek and Qualcomm. Once it gets 3nm chip orders, the South Korean firm could try to get orders to make chips using its upcoming 2nm process node.
Samsung Foundry could make Snapdragon 8 Elite Gen 3 using 2nm process node
Apparently, Qualcomm has commissioned Samsung Foundry to create a prototype for the Snapdragon 8 Gen 3, which is scheduled to be launched in the second half of 2026. This chip will be made using Samsung's 2nm process node. This project can make or break Samsung's future in the foundry business.
The report claims that Samsung Foundry's chip plant, which is under construction in Taylor, Texas, USA, will be centered around the 2nm process node (SF2). A local chip plant could persuade US-based firms, including Qualcomm, to place their trust in Samsung Foundry.
