TSMC's 3nm Process Drives Up Costs for Dimensity 9400 and Snapdragon 8 Gen 4 by 20%

TSMC's 3nm Process Drives Up Costs for Dimensity 9400 and Snapdragon 8 Gen 4 by 20%Recent reports indicate that the cost of procuring new flagship mobile chipsets manufactured using TSMC's N3E process, including MediaTek's Dimensity 9400 (codenamed D9400) and Qualcomm's Snapdragon 8 Gen 4 (codenamed SM8750), has increased by approximately 20% compared to their predecessors.Specifically, the procurement cost of Dimensity 9400 is estimated at $155 (approximately 1084), while Snapdragon 8 Gen 4 is priced around $190 (approximately 1328)

TSMC's 3nm Process Drives Up Costs for Dimensity 9400 and Snapdragon 8 Gen 4 by 20%

Recent reports indicate that the cost of procuring new flagship mobile chipsets manufactured using TSMC's N3E process, including MediaTek's Dimensity 9400 (codenamed D9400) and Qualcomm's Snapdragon 8 Gen 4 (codenamed SM8750), has increased by approximately 20% compared to their predecessors.

Specifically, the procurement cost of Dimensity 9400 is estimated at $155 (approximately 1084), while Snapdragon 8 Gen 4 is priced around $190 (approximately 1328). The primary driver behind this cost increase is Qualcomm's adoption of TSMC's 3nm N3E process for the Snapdragon 8 Gen 4, coupled with the integration of its proprietary Oryon cores, replacing the previous ARM CPU cores. This technological upgrade has resulted in higher production costs, forcing Qualcomm to raise product prices to offset these expenses.

MediaTek's Dimensity 9400 launch event is scheduled for October 9th, themed "AI Core Breakthrough." Qualcomm's Snapdragon 8 Gen 4, on the other hand, is set to be unveiled at the Qualcomm Snapdragon Summit, taking place from October 21st to 23rd.

The release of these two flagship chipsets is expected to ignite a new wave of competition in the Android phone market. These launches are anticipated to prompt Android phone manufacturers to introduce new products to meet market demand. However, the rising chipset costs might impact phone prices, potentially leading to higher costs for consumers seeking premium devices.

Dimensity 9400: AI Core Breakthrough

MediaTek's Dimensity 9400, the company's latest flagship chipset, is manufactured using TSMC's N3E process, promising significant performance enhancements and reduced power consumption. The chipset is expected to feature cutting-edge AI engines and image processing technologies, delivering a smoother user experience and robust AI capabilities.

Snapdragon 8 Gen 4: Powered by Oryon Cores

Qualcomm's Snapdragon 8 Gen 4 utilizes TSMC's 3nm N3E process and incorporates its in-house developed Oryon cores, replacing the previous ARM CPU cores. Oryon cores, Qualcomm's proprietary CPU architecture, aim to optimize performance and power efficiency. The chipset is expected to offer enhanced graphics processing capabilities and faster network speeds.

Impact of Price Increases

The escalating chipset costs might have a ripple effect on phone prices, potentially leading to higher prices for premium smartphones. However, the rising chip costs also signal that phone manufacturers will prioritize technological innovation, delivering more powerful performance and feature-rich experiences for consumers.

Future Outlook

As chip technology continues to evolve, we can anticipate further performance enhancements and richer functionalities in future mobile chipsets. However, the rising chip costs serve as a reminder that technological advancements come at a price, requiring consumers to carefully weigh price and functionality before making a decision.