Qualcomm planned to make two different versions of its next big phone chip called Snapdragon 8 Elite Gen 2. The company wanted Samsung to build one version using fancy 2nm technology with the secret name Kaanapali S. Qualcomm also lined up TSMC to make another version of the same processor. The chip maker thought having two suppliers would keep costs down for phone companies. Everything changed when Qualcomm decided to cancel its deal with Samsung.
Samsung could not make enough working chips to satisfy Qualcomm's needs. The Korean company only managed to produce 50 percent good chips during testing. Samsung needed to reach 70 percent success rates to make mass production profitable. Qualcomm saw the writing on the wall and pulled out of the partnership. The company removed both the 8850-S and 8850-T model numbers from its plans.
TSMC becomes the sole manufacturer of the Snapdragon 8 Elite Gen 2 processor. Phone makers will pay more money since Qualcomm lacks competition between suppliers. The reference design chip costs phone companies $15,000 just for testing purposes. TSMC will use its advanced N3P manufacturing process to build the processors. Samsung might try again later if the company fixes its production problems.
Samsung could not make enough working chips to satisfy Qualcomm's needs. The Korean company only managed to produce 50 percent good chips during testing. Samsung needed to reach 70 percent success rates to make mass production profitable. Qualcomm saw the writing on the wall and pulled out of the partnership. The company removed both the 8850-S and 8850-T model numbers from its plans.
TSMC becomes the sole manufacturer of the Snapdragon 8 Elite Gen 2 processor. Phone makers will pay more money since Qualcomm lacks competition between suppliers. The reference design chip costs phone companies $15,000 just for testing purposes. TSMC will use its advanced N3P manufacturing process to build the processors. Samsung might try again later if the company fixes its production problems.
