Samsung is in the running to mass-produce Qualcomm's next-generation Snapdragon 8 Elite Gen 2 chip. This chip is set to power next year's flagship smartphones. This is big news because Samsung had previously lost out to TSMC for the initial orders. Samsung is now hoping to use its advanced 2nm process to win back Qualcomm's trust. This process is cutting-edge, but Samsung faces some hurdles, like improving its production yields.

Samsung's current 2nm wafer production stands at 7, 000 units per month. However, the company has not disclosed specific details about customer orders, especially for the Snapdragon 8 Elite Gen 2 chip. The design work for this chip is expected to wrap up in the second quarter of this year. Mass production preparations are slated to begin in the first quarter of 2026. A tipster revealed that small-scale production could start at Samsung's Hwaseong S3 plant, with a monthly output of 1, 000 12-inch wafers. This plant is one of the most advanced in the world.

Samsung's 2nm yields during the trial production of the Exynos 2600 were around 30 percent. This is an improvement from the troubled 3nm GAA node, but it still needs to get better. The Hwaseong S3 facility will contribute only 15 percent of the total 2nm GAA technology capacity. Currently, talks are ongoing between Samsung and Qualcomm to equip the Snapdragon 8 Elite Gen 2 chip in next year's flagship smartphones. However, the outcome of these discussions remains uncertain. Qualcomm has previously explored a dual-sourcing strategy to reduce chipset costs by using both Samsung's and TSMC's technologies. Unfortunately, these plans did not come to fruition due to Samsung's yield issues. With TSMC already accepting orders for its 2nm wafers, Samsung is under pressure to deliver.

Qualcomm has not confirmed any details about customer orders for the Snapdragon 8 Elite Gen 2 chip. This leaves many questions unanswered. Will Samsung's advanced 2nm process be enough to secure the deal? Can Samsung improve its yields in time? Only time will tell how this chip production face-off plays out.

Samsung and Qualcomm: A Chip Production Face-Off

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