Qualcomm reportedly plans to contract TSMC to make all its processors demanding 3nm process manufacturing.

Media outlets in South Korea have reported that Qualcomm decided to have TSMC manufacture all of its next-generation 3nm processors instead of Samsung due to yield issues at Samsung's foundry.

Qualcomm has also placed some of its Snapdragon 8 Gen 1 chip orders demanding 4nm process manufacturing with TSMC, according to the media reports. Samsung was previously the sole supplier for the processor.

MediaTek, Qualcomm's major competitor in the smartphone SoC segment, has already contracted TSMC to make its next-generation 3nm chips, according to sources familiar with the matter. The latest MediaTek 5G SoC series, dubbed Dimensity 9000, is manufactured using TSMC's 4nm process technology.

When MediaTek's business enters its peak season, it can be among TSMC's top-3 customers, the sources said.

Qualcomm will be competing for the available 3nm process capacity at TSMC, which has obtained order commitments from not only MediaTek but also from other major clients such as Apple and Intel, the sources indicated.

With Qualcomm looking to shift its major mobile SoC orders to TSMC, it remains to be seen whether such a move will challenge MediaTek's competitiveness in the mobile SoC field, the sources said. TSMC has been MediaTek's major foundry partner for its smartphone processors.

MediaTek's Dimensity 9000 5G SoCs have been well-recognized and adopted by major China-based smartphone vendors, which are set to roll out their new models powered by the processor later in the first quarter of 2022, company CEO Rick Tsai was quoted as saying in previous reports.

MediaTek expects its revenue to grow at a CAGR of 15% through 2024.

By: DocMemory
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