TSMC's N3E Process Cost Increase: Flagship Chip Prices Soar, How Will Smartphone Manufacturers Respond?

TSMC's N3E Process Cost Increase: Flagship Chip Prices Soar, How Will Smartphone Manufacturers Respond?While the chip price increase will have a certain impact on smartphone pricing, there are fluctuations in the purchase prices for different smartphone brands, and the price hike may not be uniform. It has been reported that one smartphone manufacturer has already convinced its executives and is considering a price reduction strategy

TSMC's N3E Process Cost Increase: Flagship Chip Prices Soar, How Will Smartphone Manufacturers Respond?

Recent news surrounding the cost increase of TSMC's latest N3E manufacturing process has attracted widespread attention. According to leaks, the next-generation flagship chips using this technology will see a significant price hike. Among them, the Snapdragon 8 Elite is rumored to be priced 25%-30% higher than the Snapdragon 8 Gen3, reaching approximately $190 (around 1333 yuan); while the Dimensity 9400 chip, also using the same process, will see its cost rise to around $155 (approximately 1090 yuan).

This news has also sparked industry concerns about smartphone prices. The blogger @DigitalChatStation further confirmed the news, revealing that upcoming relatively small-sized straight-screen smartphones will have significant price disparities, with the starting price of all three models hovering around 4000 yuan. Currently, domestic smartphone manufacturers planning to launch relatively small-sized straight-screen new models and expected to release soon include vivo, OPPO, and Xiaomi, with corresponding models being the vivo X200 Pro mini, OPPO Find X8, and Xiaomi 15, with estimated release dates of October 14th, mid-to-late October, and the end of October, respectively.

While the chip price increase will have a certain impact on smartphone pricing, there are fluctuations in the purchase prices for different smartphone brands, and the price hike may not be uniform. It has been reported that one smartphone manufacturer has already convinced its executives and is considering a price reduction strategy.

Despite the rising chip prices, flagship smartphones equipped with the Dimensity 9400 and Snapdragon 8 Elite still boast powerful performance. The Dimensity 9400 adopts TSMC's 3nm process technology and a full-core design, with the X925 ultra-core clocked at 3.626GHz, a significant improvement over the previous generation Cortex-X4 core's 3.25GHz; the X4+A720 large cores remain unchanged, with frequencies of 3.30GHz and 2.40GHz; it also features the Immortalis-G925MC12 GPU with a clock speed of 1.612GHz.

The Dimensity 9400's NPU computing power has increased by 40% compared to the Dimensity 9300, and its LPDDR5X transfer rate reaches 10.7Gbps, offering a 25% performance improvement and a 25% reduction in power consumption. Furthermore, the chip has upgraded AI computing power and supports hardware-level ray tracing, with ray tracing performance nearly 20% better than the previous generation chip. This means the Dimensity 9400 can handle complex tasks, run large apps and games more efficiently and smoothly, enhancing the overall performance of smartphones while extending battery life, delivering a better user experience with enhanced control and real-time AI features.

The Snapdragon 8 Elite, on the other hand, adopts a 2+6 core architecture, with two ultra-cores clocked at 4.32GHz and six large cores clocked at 3.53GHz, a noticeable improvement over the previous generation Snapdragon 8 Gen3's 3.3GHz. Moreover, the new chip boasts a 35% increase in single-core performance and a 30% improvement in multi-core performance. Overall, it demonstrates a stronger performance advantage in multi-core application scenarios, promising a smoother and more immersive graphics experience for users.

Currently, the launch model for the Dimensity 9400 has been largely confirmed, with the vivo X200 series set to be the first to adopt it, followed by the OPPO Find X8/X8 Pro. Regarding Snapdragon's new chip, recent reports indicate that the Xiaomi 15 series, OnePlus 13, and Honor Magic7 series are all vying for the first launch, with all expected to debut around October.

Aside from the smaller screen versions, vivo, OPPO, and Xiaomi will also release larger versions of their flagship phones, namely the vivo X200 Pro, OPPO Find X8 Pro, and Xiaomi 15 Pro. Information suggests these new models will feature new custom-made larger main cameras, 2K OLED screens, dual periscope telephoto lenses, ultra-large capacity batteries exceeding 6000mAh, and ultrasonic in-display fingerprint sensors, among other upgrades, aiming to offer an improved user experience.

In conclusion, although the cost increase of TSMC's N3E process has resulted in a surge in flagship chip prices, it won't hinder smartphone manufacturers from launching their next-generation flagship products. To address the pressure brought by rising chip prices, smartphone manufacturers may adjust smartphone pricing, optimize product configurations, and explore other chip suppliers to balance the relationship between cost and performance. Ultimately, through market competition, consumers will gain more value-for-money flagship smartphones.