In a potential seismic change for the semiconductor foundry landscape, Qualcomm Incorporated and MediaTek Inc. are reported to be exploring moving production of their next-gen 2 nm chip production away from Taiwan Semiconductor Manufacturing Company (TSMC) toward Samsung Electronics Co., Ltd.’s foundry business.
This shift is driven by cost pressure, capacity constraints, and Samsung’s increasing foundry readiness — and it could reshape how top-tier mobile and compute chips are manufactured globally.
What’s fuelling the move of 2nm chip production?
Cost pressures at TSMC
TSMC is reportedly hiking wafer prices for its most advanced nodes, including 2 nm, by as much as 50%, according to industry sources. For clients like Qualcomm and MediaTek that ship millions of units, such cost increases have material impact on margins and product pricing.
Capacity & priority constraints
TSMC’s advanced-node capacity is increasingly locked in. Rumours suggest that major clients (notably Apple Inc.) have reserved large chunks of 2 nm capacity, limiting availability for others.
For Qualcomm and MediaTek, securing a reliable supply of 2 nm wafers is vital for their flagship chip timelines.
Samsung’s foundry revival & opportunity
Samsung Foundry has been pushing hard to win next-gen orders. Reports from June 2025 indicate that Samsung is nearing a deal with Qualcomm to supply 2 nm wafers. T
Although Samsung’s yield rates still lag behind TSMC (Samsung reportedly ~40% versus TSMC ~60% for early 2 nm runs) — DQ — the company is offering competitive pricing and capacity incentives.
What the shift means for Qualcomm and MediaTek
For Qualcomm
Qualcomm is reportedly validating chips on Samsung’s 2 nm process for its upcoming flagship “Snapdragon 8 Elite 2” series, codenamed “Kaanapali S”, planned for the Samsung Galaxy S26 series in 2026.
By using Samsung’s foundry, Qualcomm can diversify supply risk, reduce cost exposure, and possibly enable more aggressive performance/power gains.
For MediaTek
Although MediaTek has a strong relationship with TSMC and recently taped-out a 2 nm SoC for mass-production at TSMC in late 2026, the rising costs at TSMC are prompting consideration of alternate foundries.
Shifting to Samsung (even partially) could help MediaTek reduce cost pressures and improve margin flexibility.
Broader industry implications
Foundry competition heats up
If Qualcomm and MediaTek shift part of their 2 nm volume to Samsung, that would be a major blow to TSMC’s dominance in the ultra-advanced node space and a corrective to the “one-big-foundry” paradigm.
Smartphone and consumer electronics impact
End-device makers (smartphones, tablets, PCs) could benefit from lower component cost, more supply resilience, and possibly earlier access to the most advanced nodes if Samsung and foundry customers align efficiently.
Timeline & risk considerations
- Mass production of 2 nm is expected to begin second half of 2025 for both TSMC and Samsung.
- Yield challenges at Samsung remain a key risk: low yield means higher cost per good chip, which undermines the cost-advantage.
- For both Qualcomm and MediaTek, the decision is not yet fully locked: rumours abound of back-and-forth, dual-sourcing and contingency planning. Moneycontrol
Key facts & figures
- TSMC 2 nm process: yield ~60% in early run; Samsung: ~40% yield reported.
- Samsung is targeting mass production of its 2 nm (GAA) node in early 2026.
- Price pressure: 2 nm wafer cost at TSMC reportedly rising significantly.
- Qualcomm may deliver a Samsung-foundry built 2 nm variant of its Snapdragon for Galaxy devices.
What to watch next
- Official confirmations: So far, many reports are rumours or “nearing deal” status. Actual contracts or announcements by Qualcomm, MediaTek or Samsung would clarify the shift.
- Yield improvement at Samsung: Tracking Samsung’s foundry yield for 2 nm will show whether it becomes a viable high-volume option.
- Device release timing: Which devices will carry the Samsung-made 2 nm chips, and when? Impacts performance benchmarks, marketing claims.
- Pricing impact: Will cost savings from shifting foundries translate to lower device prices or higher margins?
- TSMC’s response: Will TSMC lower prices, expand capacity faster, or lock in major customers to maintain its leadership?
