Samsung’s latest push in the semiconductor market might change the balance of power in the industry. The firm has reportedly started producing the Exynos 2600 chips using its advanced 2nm GAA process. More importantly, this progress puts Samsung as an attractive alternative for chip manufacturing companies like Qualcomm and MediaTek, who are frustrated with TSMC’s price hike. Qualcomm has even reportedly ordered samples of the Snapdragon 8 Elite Gen 5 chip on Samsung’s 2nm node .
TSMC’s rising costs push Qualcomm and MediaTek toward Samsung
TSMC had recently decided to raise the prices of its advanced nodes. This move has put the entire industry on alert. Reports suggest that 2nm wafers of TSMC might witness a whopping 50% price increase. Its 3nm N3E and N3P processes are also set to become more expensive, at $25,000 to $27,000 per wafer.
For chip designers like Qualcomm and MediaTek, this rising price could have a strong ripple effect. High manufacturing prices mean costlier chipsets, which may pressure smartphone brands to cut corners on hardware or absorb thinner profit margins. To avoid this, both Qualcomm and MediaTek are considering Samsung’s foundry as a potential partner to balance their supply chains and reduce costs.
This shift is no less than a golden opportunity for Samsung
Samsung’s foundry business has always struggled due to numerous issues. However, its latest 2nm GAA process has reportedly achieved 50% yield, marking a significant process. This change, combined with the rising cost of TSMC, gives Samsung a rare chance to win new contracts. It could rebuild its base in this highly competitive market.
On the other hand, Qualcomm seems to have begun testing its 2nm GAA versions of the Snapdragon 8 Elite Gen 5 chipset. MediaTek has also completed the tape-out process of its first 2nm SoC , which is expected to land in 2026. Both of these moves suggest that the chipmakers are already preparing to diversify beyond TSMC in their production line.
