Samsung loses bid to make Qualcomm Snapdragon 8 Elite 2 chip, moves to TSMC N3P process node

Samsung has failed to secure another large customer for its semiconductor business, losing Qualcomm and its contract to build its next-gen Snapdragon 8 Elite 2 processor, which will now be fabbed on TSMC's new N3P process node.

In a new article from The Bell, we're learning that this is yet another painful experience for Samsung, as it hasn't proven its semiconductor business can mass produce high-end chips. According to industry insiders, Qualcomm's new Snapdragon 8 Elite 2 (tentative name) will be released in the second half of 2025, mass-produced on TSMC's third-gen 3nm (N3P) process node. Samsung entered the competition to win the order, but "ultimately fell through".

Samsung used to be the largest manufacturer of Qualcomm chips, with a monopoly until the company launched its first-gen Snapdragon 8 processor in late 2021. The company experienced yield issues, but TSMC was then put in charge of the improved version -- Snapdragon 8+ -- and the rest is history.

Qualcomm released its Snapdragon 8 Elite processor in the second half of 2024, using TSMC's second-gen N3E process node, with reports teasing that Samsung Electronics negotiated with Qualcomm for the Snapdragon 8s Elite, a cost-effective version of the chip, but failed to do so.

The tables have turned over the years, from Samsung fabbing Qualcomm chips, to Qualcomm powering Samsung Galaxy S series smartphones. Samsung's new Galaxy S25 will be unveiled in January 2025, and will be filled entirely this time, with Qualcomm Snapdragon 8 Elite processors... a total bizarro world, eh?