Qualcomm Taps Samsung Foundry for Next-Gen 2nm Chip Production
Outsourcing production for next-generation chips is planned by Qualcomm, a worldwide leader in mobile application processors (APs), to the foundry business at Samsung Electronics. The arrangement involves the manufacturing of advanced APs based on Samsung's 2nm process.
Confirming 2nm Partnership Talks
Now, it has been confirmed by Qualcomm CEO Cristiano Amon at CES 2026 that the company has started a partnership. "We have started discussions with Samsung Electronics on contract manufacturing using the latest 2-nanometer process," said Amon, stating that design work was completed with a target for commercialization shortly. This marks the first official confirmation that Qualcomm intends to use Samsung for its 2nm AP production.
Should the contract come through, this would mark one great reunion as Samsung would again be back to the production of Qualcomm's most advanced products since 2021. Qualcomm shifted its advanced chip orders toward Taiwan's TSMC over yield and performance issues with Samsung's previous processes.
Factors Driving Qualcomm's Return to Samsung
Reports state that Qualcomm feels confident that Samsung has addressed its prior manufacturing issues, namely low yields and overheating. Also, the rising technological prowess of Samsung, aided by significant contracts for the manufacture of Tesla's next-gen "AI6" AI chip, is another factor.
Then again, the upward pressure on wafer prices being exerted by TSMC, as analyzed by industry analysts, is causing Qualcomm to need to diversify its manufacturing associates thereby providing the chance for Samsung to directly compete with its cutting-edge 2nm technology.
Manufacturing Plan Details
Samsung will use the 2nm process to manufacture Qualcomm's Snapdragon 8 Elite 5th generation AP. The two firms are understood to be exchanging wafers for performance tuning, signaling that commercial launch is imminent.
Industry sources suggest Samsung is expected to dedicate some 10% of the production capacity from its S3 factory located in Hwaseohg, South Korea, for Qualcomm. This is estimated to be around 2000 12-inch wafers per month. Given an anticipated $20,000 per 2nm wafer, this contract will produce significant annual revenue for Samsung's foundry division, with total order value potentially breaking into trillions of won.
Impact on Broader Samsung Foundry Business
Winning Qualcomm 2nm orders signifies, perhaps more than anything else, Samsung's foundry business is on its path toward recovering core competitiveness. This came soon after other key wins: $16.5 billion with Tesla, as well as reported orders from NVIDIA for 8nm GPUs and Intel for 8nm chipsets.
Samsung is strengthening its position as a viable alternative to TSMC in high-end semiconductors as the AI boom raises demand, capitalizing on the very opportunities that the market leader is being forced into as it raises prices for production.
