SamMobile has affiliate and sponsored partnerships. If you buy something through one of these links, we may earn a commission. Learn more.

Samsung could be in trouble as Qualcomm and TSMC join forces


Last updated: April 7th, 2021 at 13:03 UTC+02:00

The pandemic has had a significant impact on the chip market. It’s now witnessing a global chip shortage the likes of which have never been seen before. Even though the major players in the industry are taking steps to improve the situation, the shortage is far from over.

Qualcomm may be one of the biggest suppliers of mobile chipsets but it’s entirely dependent on third-party manufacturers. The company doesn’t have its own production facilities so it has to secure manufacturing capacity at companies like Samsung and TSMC. Its latest deal with TSMC could spell trouble for Samsung.

TSMC grants an unprecedented favor to Qualcomm

Qualcomm has had its high-end chipsets manufactured by both Samsung and TSMC. It chose the latter for the 2019 and 2020 chips but returned to Samsung for the Snapdragon 888. It was reported last month that Qualcomm would also have its next-gen flagship processor manufactured by Samsung, despite rumors that it may shift back to TSMC.

It’s not just the lack of available manufacturing capacity that’s causing problems in the chip market. Packaging substrates and wafers are also in short supply. All of these issues are making companies evaluate their strategies so that they don’t face any business disruption down the line.

Industry sources are now reporting that TSMC and Qualcomm are taking a big step to further cement their relationship. Despite the strain on its manufacturing capacity, TSMC has agreed to manufacture a batch of high-end 5G chips for Qualcomm on priority. Precisely what chips TSMC has decided to accommodate remains unknown but it’s clear that this would be an unprecedented favor that the Taiwanese manufacturer would be extending to Qualcomm.

Has that favor been done at Samsung expense? Could this mean that Qualcomm would ultimately have its next-gen flagship chipset made by TSMC as well? Even if that’s not the case, Samsung may also struggle to secure enough chipsets from Qualcomm for its new flagships next year.

The chip shortage has already forced Samsung to cancel the Galaxy Note 21. Since it maintains an Exynos/Qualcomm split among its flagships, lack of adequate supply from Qualcomm might also force Samsung to adjust its product lineup in 2022.

Business QualcommTSMC
Load 3 comments

You might also like

Samsung’s acquisition of ARM highly unlikely because of antitrust issues

The latest report by BusinessKorea suggests that Samsung won’t be interested in the race to acquire ARM for multiple reasons. Apparently, Nvidia failed to acquire ARM, and it was touted that Samsung Electronics, SK Hynix, Qualcomm, and Intel would be next in line to complete the UK chip designer’s acquisition. While ARM’s scope of business is […]

  • By Sagar Naresh
  • 6 days ago

Galaxy S24 could be among the first phones to feature Wi-Fi 7

Samsung has always been the first Android OEM to bring the latest version of Wi-Fi to the market. And the latest report suggests that the first Wi-Fi 7-equipped smartphone will be out by the second half of 2024. While Apple devices are still using Wi-Fi 6, and there are no more phone launches on the near […]

  • By Sagar Naresh
  • 6 days ago

Qualcomm could launch two versions of Snapdragon 8 Gen 2 chipset

It has been widely reported that Samsung will exclusively use a Qualcomm processor in the Galaxy S23 lineup. And that processor is scheduled to be unveiled in November 2022 during the Snapdragon Summit 2022 event. Now, it is rumored that Qualcomm might unveil two versions of the chipset. According to reliable tipster Digital Chat Station, […]

  • By Asif Iqbal Shaik
  • 2 weeks ago

Apple chose TSMC over Samsung for future 3nm M3 and A17 Bionic chips

Although Samsung was the first foundry to manufacture 3nm chips, beating TSMC by a few months, the Korean tech giant’s efforts don’t seem to have impressed Apple enough. The Cupertino giant has reportedly picked TSMC over Samsung to manufacture its future M3 and A17 Bionic chips. Apple will reportedly use TSMC’s N3E (3nm) fabrication process […]

  • By Mihai Matei
  • 2 weeks ago

Qualcomm’s new Snapdragon chips bring a much needed performance boost to affordable phones

Qualcomm has unveiled two new mid-range mobile chips—Snapdragon 4 Gen 1 and Snapdragon 6 Gen 1—that bring a much-needed performance boost to affordable smartphones. Both new chipsets get faster CPUs, more powerful GPUs, and faster wireless connectivity, and they could be used in future Galaxy phones. Snapdragon 4 Gen 1 The Snapdragon 4 Gen 1 […]

  • By Asif Iqbal Shaik
  • 3 weeks ago

Samsung may have lost future flagship Qualcomm chip orders to TSMC

Samsung is trying its best to win over customers from TSMC which remains the world’s largest contract chip manufacturer. While the company did receive orders for Qualcomm’s flagship Snapdragon 8 Gen 1 chipset, yield issues and other problems related to its process technology forced Qualcomm shift to TSMC. Qualcomm’s latest Snapdragon 8+ Gen 1 is […]

  • By Adnan Farooqui
  • 3 weeks ago