In the rapidly evolving landscape of technology, companies are engaged in a constant race to develop cutting-edge and highly efficient hardware. Apple, known for its pioneering tendencies, is rumored to be on track to unveil its 3nm chip later this year. Meanwhile, Qualcomm, a significant player in the industry, has opted to collaborate with TSMC’s N4P process for its upcoming Snapdragon 8 Gen 3 release. However, there are indications that Qualcomm is encountering some obstacles.
According to insights from Ming-Chi Kuo, an analyst at TF International Securities, Qualcomm recently implemented a workforce reduction of 415 employees due to sluggish smartphone sales. This setback may explain their decision not to pursue the more costly development of the 3nm chip at this juncture. Apple’s dominant presence in acquiring most of the new wafer shipments could be another factor influencing this decision.
Nevertheless, Qualcomm has alternative routes. They might consider utilizing TSMC’s more cost-effective N3E process, which is an alternative version of the 3nm technology. However, if Qualcomm chooses to exclusively collaborate with TSMC, they might incur higher expenses. This prompts Kuo to speculate that Qualcomm could rekindle its partnership with Samsung, leveraging its 3nm technology. Previously, Qualcomm had explored the possibility of working with both TSMC and Samsung to manage costs.
Samsung has made notable advancements with its 3nm technology, which could make it an appealing option for Qualcomm. Historically, Qualcomm opted for TSMC’s 4nm process due to its superior performance and outcomes. Given their current resource constraints, Qualcomm might harbor reservations about renewing their alliance with Samsung. Yet, circumstances might compel them to do so. If smartphone sales experience an upswing, Qualcomm’s plans could potentially shift.
