Samsung used to be a major player in the contract chip manufacturing industry. It has produced many processors for major brands, including Apple, NVIDIA, and Qualcomm. However, Samsung has recently lost orders from these companies.
More specifically, the company has failed to secure any contracts for the 3nm process. According to a report, Samsung Foundry was hoping to win orders for Qualcomm’s upcoming 3nm processors. However, it seems that luck has not been on Samsung’s side.
Samsung appears to have failed to secure orders for Qualcomm’s Snapdragon 8s Elite
According to a new report from The Bell, Samsung Foundry is having trouble securing orders from customers. Despite being the only brand other than TSMC capable of manufacturing chips using advanced processes (7nm and below), the company has been unable to secure new orders.
Samsung Foundry has not received any orders for 3nm processors, possibly due to the perception that it does not have enough capacity to produce millions of 3nm processors. After all, the company has failed to ramp up production of the Exynos 2500 to power millions of Galaxy S25 series phones.
The report claims that Qualcomm’s next flagship processor – the Snapdragon 8 Elite Gen 2 (tentatively named) – will be manufactured using TSMC’s third-generation 3nm (N3P) process. It is expected to be announced in the second half of 2025.
Samsung Foundry tried to secure the order but was unsuccessful, citing yield issues.
Samsung Foundry has apparently been in talks with Qualcomm to produce the Snapdragon 8s Elite, which is a slightly worse version of the Snapdragon 8 Elite. However, this attempt by Samsung Foundry also failed, and the processor will be manufactured by TSMC.
Samsung Foundry needs to get over the perception that it cannot produce enough processors using its 3nm process. To achieve this, Samsung Foundry needs to create enough in-house processors to equip high-end Galaxy phones. A recent report claims that the Galaxy Z Flip 7 will be powered by the Exynos 2500.
Only then will Samsung Foundry be able to win some orders for 3nm processors from MediaTek and Qualcomm. After that, it can try to win orders for 2nm processors.
Samsung Foundry Could Be Responsible for Manufacturing the Snapdragon 8 Elite Gen 3 Using a 2nm Process
Qualcomm has asked Samsung Foundry to create a prototype for the Snapdragon 8 Gen 3, which is expected to launch in the second half of 2026. The processor could be fabricated using Samsung’s 2nm process. This could make or break Samsung’s future in the foundry business.
The report claims that Samsung Foundry’s foundry, which is being built in Taylor, Texas, in the US, will focus on the 2nm (SF2) process. Such a US-based manufacturing facility could convince US-based companies – including Qualcomm – to put their trust in Samsung Foundry.