TSMC Wins Qualcomm Snapdragon 8 Elite 2 Order; Samsung Shifts Strategy to 2nm Process and Exynos 2500 Outsourcing

TSMC Wins Qualcomm Snapdragon 8 Elite 2 Order; Samsung Shifts Strategy to 2nm Process and Exynos 2500 OutsourcingKuaKeJi reported on December 27th that significant changes have occurred in the chip foundry industry. TSMC successfully won the order to manufacture Qualcomm's next-generation flagship processor, the Snapdragon 8 Elite 2, further solidifying its leading position in high-end chip manufacturing

TSMC Wins Qualcomm Snapdragon 8 Elite 2 Order; Samsung Shifts Strategy to 2nm Process and Exynos 2500 Outsourcing

KuaKeJi reported on December 27th that significant changes have occurred in the chip foundry industry. TSMC successfully won the order to manufacture Qualcomm's next-generation flagship processor, the Snapdragon 8 Elite 2, further solidifying its leading position in high-end chip manufacturing. The Snapdragon 8 Elite 2 will reportedly be mass-produced using TSMC's advanced 3-nanometer N3P process, signifying a continuation of their long-term partnership and showcasing the maturity and market competitiveness of TSMC's N3P technology. It's noteworthy that Samsung Electronics also actively competed for the order of the Snapdragon 8s Elite, a lower-cost version of the Snapdragon 8 Elite 2, but ultimately failed, which undoubtedly dealt a blow to Samsung's position in the high-end chip foundry market.

Despite losing the Snapdragon 8 Elite 2 bid, Samsung hasn't abandoned its competition in the high-end chip foundry sector. Reports indicate Samsung has shifted its focus to Qualcomm's upcoming Snapdragon 8 Elite 3 processor. This processor will utilize an even more advanced 2-nanometer process and is expected to launch in the second half of 2026. Qualcomm reportedly plans to commission Samsung Electronics for the prototype development of the Snapdragon 8 Elite 3, demonstrating that Samsung remains a crucial strategic partner for Qualcomm, and the two companies will maintain a close cooperative relationship in the future. This offers Samsung both a chance to recoup previous losses and an opportunity to enhance its technological capabilities and accumulate experience in advanced process technologies. Successfully securing the Snapdragon 8 Elite 3 prototype development will directly influence the choice of mass production for this processor, laying the foundation for Samsung to win subsequent mass production orders.

Beyond its active participation in the foundry partnership for Qualcomm's high-end chips, Samsung's own chip business is undergoing a strategic realignment. Recent media reports suggest that the Samsung Exynos 2500 processor might be outsourced for production for the first time. This news has drawn widespread attention in the industry, as it marks a significant shift in Samsung's chip strategy. For a long time, Samsung has adhered to in-house production of its Exynos series processors, but with increasingly intense market competition and soaring R&D costs for advanced process technologies, Samsung has had to reassess its chip production strategy.

Samsung's LSI division has reportedly held extensive negotiations with external wafer foundry partners and made "significant progress." This indicates Samsung's firm commitment to outsourcing part of its chip production to other manufacturers. Underlying this strategic shift are Samsung's considerations of cost control and production efficiency. Outsourcing allows Samsung to reduce production costs, improve efficiency, and thus enhance its market competitiveness. It also enables them to allocate more resources to core businesses like chip design and R&D, maintaining its technological lead.

It's noteworthy that the Samsung Galaxy S25 series will entirely use Qualcomm Snapdragon 8 Elite processors. Previously, Samsung consistently aimed to equip its flagship phones with its own Exynos processors. However, due to factors such as the Exynos 2500's development progress and market competition, Samsung ultimately decided against using its own chip in the Galaxy S25. This decision further accelerated Samsung's collaboration with external wafer foundry partners. The Galaxy S25's complete adoption of Qualcomm Snapdragon processors shows Samsung is adjusting its mobile business strategy, prioritizing market demand and product competitiveness. The outsourcing of Exynos 2500 also reflects Samsung's strategic adjustment of its own chip business, seeking a more flexible and efficient production model.

In summary, TSMC's winning of the Qualcomm Snapdragon 8 Elite 2 foundry order and Samsung's strategic shift towards a 2nm process and outsourcing of the Exynos 2500 reflect the intense competition in the current chip foundry industry and the strategic adjustments manufacturers are making to adapt to changing market conditions. TSMC's leading position in high-end process technology is further solidified, while Samsung, through its cooperation with Qualcomm and its own strategic adjustments, strives to maintain its competitiveness in a fiercely competitive market. The competition in the chip foundry industry will become even more intense in the future, with manufacturers continuing to pursue technological breakthroughs and strategic innovation to meet ever-changing market demands. This competition not only affects the fate of chip manufacturers but also profoundly impacts the direction of global technological development. In the future, we will see more technological innovations and market transformations, driving the entire industry forward.