Samsung Electronics is strategically working to regain Qualcomm’s confidence after years of lost orders in the semiconductor foundry business. Despite being a former key supplier, Samsung has struggled to secure major contracts from Qualcomm, which shifted its production to TSMC in recent years. Now, Samsung is positioning itself for a potential comeback, focusing on its cutting-edge 2nm process to manufacture Qualcomm’s Snapdragon 8 Elite 3.
Samsung’s setbacks began in 2021 when it lost Qualcomm’s Snapdragon 8 1st generation production due to yield issues. TSMC took over the manufacturing of Qualcomm’s improved chips, including the Snapdragon 8+ 1st generation and the Snapdragon 8 Elite (N3E) released in 2023. This is somewhat of a change because Qualcomm began to broaden its foundry providers and push Samsung to the side in favor of TSMC’s higher quality production.
However, Samsung is not surrendering to Qualcomm and still tries to recover its trust from the company. The company relies on its 2nm process, which will go into the upcoming Snapdragon 8 Elite 3, expected to launch in 2026. This action indicates Samsung’s strategic direction towards the top position in the manufacturing of new generation semiconductor. Samsung aims to use the 2nm process to offer high performance and efficiency, key requirements for Qualcomm’s most advanced chips.
The success of the 2nm process is crucial. It could pave the way for Samsung to secure future high-profile orders, particularly as it continues to develop its 3nm (N3P) process for the Galaxy S25 series. While the Galaxy S25 will feature Qualcomm’s Snapdragon 8 Elite, Samsung is also preparing its Exynos 2500 chip for future devices, such as the Galaxy Z Flip 7. Though the Exynos 2500 will be used in Samsung’s foldable phones, it will face competition from Qualcomm in flagship devices.
Looking ahead, Samsung has a chance to re-enter the tightly contested semiconductors’ market via the 2nm process, especially as the battle between Samsung and TSMC for the 2nm process is unfolding. This outcome could be a turning point for Samsung’s foundry business and make a way to regaining its position in Qualcomm’s supply chain once again.
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