Qualcomm, MediaTek Are Considering Shifting 2nm Chipset Production To Samsung As TSMC’s Price Hike Is Denting Their Profits

TSMC's planned 50% price hike for its 2nm process and increased costs for its 3nm nodes are compelling major chip designers Qualcomm and MediaTek to seek alternative foundry partners. Samsung, which has reportedly commenced mass production of its 2nm GAA process, is emerging as a viable option, with Qualcomm already evaluating Samsung's 2nm GAA for future Snapdragon chips. This development presents a significant opportunity for Samsung to expand its foundry market share, despite past reputation challenges, by offering a dual-sourcing solution that could mitigate rising chip costs for its potential clients and provide financial relief to the chipset makers.

Analysis

TSMC's planned 50% price hike for its 2nm process, alongside increased costs for its 3nm 'N3E' and 'N3P' wafers to $25,000 and $27,000 respectively, is compelling major fabless chip designers Qualcomm (QCOM) and MediaTek to actively seek alternative foundry partners. This aggressive pricing strategy by TSMC (TSM) is driving a significant shift in the advanced node supply chain.

Samsung has reportedly commenced mass production of its 2nm GAA process, presenting itself as a viable alternative. Qualcomm is already evaluating a 2nm GAA version of the Snapdragon 8 Elite Gen 5 with Samsung, indicating a potential dual-sourcing strategy. MediaTek has also completed the tape-out of its first 2nm SoC for a 2026 launch, suggesting similar diversification efforts.

The rising cost of advanced chips, with the Snapdragon 8 Elite Gen 6 potentially exceeding $300, poses a substantial challenge for device manufacturers, forcing choices between hardware upgrades and profit margins. This scenario offers Samsung a "platinum-grade opportunity" to bolster its foundry market share, despite its historical reputation challenges, by securing future orders from these key clients.

Key Decisions for Investors

• Monitor TSMC's pricing power and potential customer attrition rates as major clients like Qualcomm and MediaTek explore alternatives.
• Evaluate Samsung's foundry segment's ability to capitalize on this opportunity by securing significant advanced node orders, despite its past reputation.
• Assess the long-term impact of escalating advanced chip costs on the profitability and competitive positioning of device manufacturers and their supply chains.