(9 days left!) Be the first with a 200MP camera! Visit Samsung to reserve and gain $100 in Samsung credit!

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

Samsung’s horrible yield forces Qualcomm to give TSMC its business


Last updated: February 22nd, 2022 at 13:23 UTC+01:00

Samsung has been working hard to win clients for its foundry division. Making chips for companies that don’t have their own manufacturing facilities is a very profitable business. However, it’s also very complicated.

The global chip shortage also places immense pressure on chipmakers. If they’re unable to meet clients’ supply requirements due to issues with yield or technology, the orders would go elsewhere. That’s what Qualcomm has now decided to do.

Qualcomm decides to work with TSMC instead

A new report out of South Korea claims that Qualcomm has decided to have TSMC manufacture all of its next-gen 3nm processors instead of Samsung. This is said to be due to Samsung’s yield issues.

The report also mentions that Qualcomm has even contracted TSMC to manufacture a certain percentage of its 4nm chipset, the Snapdragon 8 Gen 1 found in the Galaxy S22 series, even though Samsung Foundry was previously selected as the only manufacturer of this chip.

Samsung’s issues with yield are concerning. It’s said that the yield of the Qualcomm Snapdragon 8 Gen 1 manufactured by Samsung Foundry is 35%. What that simply means is that out of the 100 pieces that are manufactured, 65 are defective. The yield for Samsung’s own 4nm Exynos 2200 is shockingly said to be even lower than this.

Qualcomm reportedly informed Samsung of its decision to cut orders for 4nm chips and not provide any orders for 3nm chips when TM Roh, Samsung’s MX division boss, visited the company’s US headquarters last year. The yield issue is the main reason why Qualcomm won’t entrust Samsung with any more orders.

The loss of business from a major client like Qualcomm is going to hurt the foundry division but it’s not the only one. NVIDIA reportedly gave its 7nm GPU chip orders to TSMC due to yield issues at Samsung.

Samsung is expected to start manufacturing 3nm chips this year. The company is also spending over $100 billion to improve its foundry division so that it can better compete with TSMC. The sooner these efforts can bear fruit, the better it will be. Otherwise, there may not be many takers for its manufacturing capacity.

Join SamMobile’s Telegram group and subscribe to our YouTube channel to get instant news updates and in-depth reviews of Samsung devices. You can also subscribe to get updates from us on Google News and follow us on Twitter.

Business 3nmQualcommSamsung Foundry
Load 1 comments

You might also like

Samsung will continue to use special Snapdragon chip next year

For the first time in history, Samsung will use a Qualcomm Snapdragon chipset in all its Galaxy S series smartphones (Galaxy S23) sold worldwide. And this change comes after years of disappointments with its in-house Exynos processors. However, Samsung isn’t using the same Snapdragon chip everyone else uses. The South Korean firm will use a […]

  • By Asif Iqbal Shaik
  • 4 hours ago

75% of Galaxy S fans want the Galaxy S23, here’s why!

The Exynos vs Snapdragon debate has been going on for a long time. Samsung’s in-house chips have failed to match up to the standards set by Qualcomm in recent years. It got so bad three years back that Samsung apologized to customers and vowed to do better, and the result was the Galaxy S21 series’ […]

  • By Daniel van Dorp
  • 5 days ago

Here’s what Samsung calls Galaxy S23’s special Snapdragon 8 Gen 2 chip

Qualcomm launched the Snapdragon 8 Gen 2 processor a few months ago, but Samsung was nowhere to be seen in the company’s official list of partners. A few days later, it was revealed that Samsung would use a special version of the Snapdragon 8 Gen 2 in the Galaxy S23 lineup, and that appears to […]

  • By Asif Iqbal Shaik
  • 5 days ago

Samsung trumps Apple in average 5G speeds in the US

5G has been prevalent in smartphones in the US and other key markets over the past couple of years. But which brand sells the best smartphones in terms of 5G connectivity and performance? Ookla, the company behind the famous SpeedTest app, has released a list showing which brands and smartphones delivered the best 5G quality […]

  • By Asif Iqbal Shaik
  • 6 days ago

Just In: Old Exynos chip beats newest Snapdragon in raytracing performance!

Samsung’s first smartphone chipset in partnership with AMD, the Exynos 2200, supports raytracing. It is a new graphics rendering method that calculates how light rays travel to offer a more accurate representation of lights, shadows, and reflections. However, there was no way to measure the Exynos 2200’s raytracing performance back then. A recently released benchmark […]

  • By Asif Iqbal Shaik
  • 1 week ago

Samsung CEO confirms construction of US semiconductor plant is on track

Samsung announced back in 2021 that they would build a $17 billion semiconductor factory in Taylor, Texas, USA. In December 2022, it was reported that the company has started procuring new equipment for this plant. Now, according to the latest information shared by Samsung’s CEO Kyung Kye-hyun, the construction of the chip plant in Taylor […]

  • By Sagar Naresh
  • 1 week ago