Ever since Samsung Foundry had poor yields of 35% while producing the Snapdragon 8 Gen 1 application processor (AP) in 2022, Qualcomm moved the production of its flagship chips to TSMC. The yield percentage tells us what percentage of the chips diced from a wafer pass through quality control. A run with a low yield hurts the foundry’s customer since it raises the price for each good chip.
A 2nm version of the Snapdragon 8 Elite Gen 5 could be built by Samsung Foundry
Here’s a good example. Let’s say you pay $12 for a pizza with 10 slices. If four slices are burned and cannot be eaten, you still pay the $12 but only six can be consumed raising the cost per slice eaten from a possible $1.20 to $2.00. Qualcomm made some design changes and had TSMC, with a 70% yield, build the Snapdragon 8+ Gen 1. Since then, Qualcomm has relied on TSMC to manufacture its pizza slices chipsets.
While TSMC will be producing a 3nm version of the Snapdragon 8 Elite Gen 5, there is speculation that a special “For Galaxy” variant of that chip will be made by Samsung Foundry using its SF2 or 2nm process node. The original buzz called for this AP to be used with next year’s flagship Galaxy S26 series. But this story changes constantly and the new word is that the Samsung Foundry-built variant of the Snapdragon 8 Elite Gen 5 will be used to power next year’s Galaxy Z Flip 8 model. The “For Galaxy” variants of Snapdragon chips have typically been overclocked versions of the same flagship Qualcomm Snapdragon chip.
In case you’ve forgotten, this year’s Galaxy Z Flip 7 was equipped with the Exynos 2500. This chipset, built by Samsung Foundry, was originally supposed to power the Galaxy S25 and Galaxy S25+ in markets outside of the U.S., Canada, and China. However, the low yields that Samsung Foundry experienced with its 3nm production forced Samsung to use the TSMC-made Snapdragon 8 Elite to power all Galaxy S25 models. This decision also gave Samsung Foundry enough time to produce enough of its Decacore Exynos 2500 AP to use on all Galaxy Z Flip 7 units.
Samsung could be the first to have a phone running on a 2nm AP next year
Samsung Foundry was able to improve its yield. It should also be pointed out that the APs used on the Galaxy Z Flip 7 featured a new kind of transistor called Gate-All-Around (GAA). Unlike the previous FinFET transistors, which covered three sides of the channel with the gate, GAA transistors use nanosheets to cover all four sides of the channel. This eliminates current leaks and improves the drive current resulting in the production of SoCs that are more powerful and energy efficient.
Reports indicate that Samsung has already delivered to Qualcomm samples of a Samsung Foundry built Snapdragon 8 Elite Gen 5 AP. But there is more exciting news to discuss here. Samsung could break a string that saw the iPhone be the first smartphone to sport a 7nm AP (A12 Bionic) with 2018’s iPhone XS and iPhone XS Max. In 2020 the iPhone 12, iPhone 12 Pro, and iPhone 12 Pro Max were the first to use a 5nm chipset (A14 Bionic). In 2023, the iPhone 15 Pro series was the first to use a 3nm SoC (A17 Pro).
Next year, Samsung’s non-Ultra Galaxy S26 models could contain the 2nm Exynos 2600 AP which would make those phones the first to be equipped with a 2nm chipset breaking Apple’s streak. The Galaxy S26 Ultra could be powered by the 3nm TSMC version of the Snapdragon 8 Elite Gen 5. Even if the Exynos 2600 AP isn’t used by Samsung next year, the special “for Galaxy” variant of the Galaxy Z Flip 8’s Snapdragon 8 Elite Gen 5 also is bult on Samsung Foundry’s 2nm node. Either way, Apple’s string of offering the first phone powered by the latest process node appears over.
This is a very fluid situation. It will probably come down to Samsung Foundry’s yields at 2nm. If the yield rate is acceptable, Samsung Foundry and TSMC could team up with the former producing the 2nm version of the Snapdragon 8 Elite Gen 5 and the latter manufacturing the 3nm version. Reports earlier this year said that Samsung Foundry had been able to achieve a 30% Yield for 2nm production leaving hope that the things were turning for the foundry.
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