Samsung’s low chip yield forces Qualcomm to change its suppliers

TSMC is moving forward to overcome the Samsung chip manufacturing business, because of the intense output from Samsung’s foundary. As a result of which Qualcomm the largest customer is pursuing TSMC.

TheElec, Korean media report reveals that Qualcomm is also asking TSMC to be part of its 4nm Snapdragon 8 Gen 1 chipset. Although Samsung is listed as the sole manufacturer of the foundry chip, it was first announced.

This big decision comes as no surprise as Samsung foundry’s yield of only 35% for the Snapdragon 8 Gen 1. This also means that Qualcomm will partner with TSMC for its upcoming 3nm SoCs. The report states that the Exynos 2200 yields less than the Qualcomm chip.

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According to the recent report, Qualcomm executives and technicians are physically present at Samsung’s foundry units to oversee the production of the Snapdragon 8Gen1. This explains why the Qualcomm chip yields better than Samsung’s own Exynos 2200. However, Qualcomm’s decision to go to TSMC indicates that the yield problem may not be completely resolved.

In 2021, tech giant NVIDIA moved orders to TSMC for its new 7nm GPUs due to Samsung’s yield issues. In addition, global chip shortages are putting severe pressure on suppliers to meet demand.

Moreover, Samsung has previously said it will spend $100 billion over the next few years to expand its chip business. We can see some of them coming to fruition soon as the company is going to produce 3nm chips later this year. Meanwhile, TSMC has cemented its position as a leader in the chip industry.

Via – SammyFans