Samsung Loses 3nm Chip Deal to TSMC Amid Yield Issues

Samsung Foundry, once a major player in the contract chip manufacturing space, has failed to secure the deal to produce Qualcomm’s upcoming 3nm Snapdragon 8s Elite chip.

Despite being one of the few companies capable of producing chips using advanced process nodes, Samsung’s 3nm process node has struggled with yield issues, which has hindered its ability to make millions of chips.

Qualcomm has reportedly turned to TSMC to manufacture its Snapdragon 8 Elite Gen 2 chip, expected to launch in the second half of 2025, using TSMC’s third-generation 3nm process.

Samsung’s attempt to secure the deal, along with a cut-down version of the chip, was unsuccessful due to concerns over the low yield of its 3nm chips.

For Samsung to regain confidence in the foundry business, it needs to overcome these yield issues.

The company is expected to use its own Exynos 2500 chips in high-end phones like the Galaxy Z Flip 7, which could help restore trust in its 3nm process.

Looking ahead, Samsung is working on its 2nm process node, with Qualcomm commissioning the company to create a prototype for the Snapdragon 8 Gen 3, set to launch in 2026.

Samsung’s new chip plant in Taylor, Texas, could play a key role in securing future chip orders from US-based companies like Qualcomm.