This is why Qualcomm continues to favor TSMC to build its chips

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Alan, an ardent smartphone enthusiast and a veteran writer at PhoneArena since 2009, has witnessed and chronicled the transformative years of mobile technology. Owning iconic phones from the original iPhone to the iPhone 11 Pro Max, he has seen smartphones evolve into a global phenomenon. Beyond smartphones, Alan has covered the emergence of tablets, smartwatches, and smart speakers.

Both Samsung Foundry's 3nm Gate-All-Around process node and TSMC's 3nm FinFET process node are showing a yield rate of 50% according to South Korea's). Gate-All-Around technology allows the transistor to come into contact with the channel on all four sides which reduces current leakage and delivers high drain current. While Samsung uses this technology, which features vertically-placed nanosheets, in its 3nm node, TSMC won't include GAA until it hits 2nm.

According to the report out of Korea, Qualcomm refuses to allow Samsung Foundry to build its chips until its yield rate hits 70%. The rate is the percentage of dies that pass quality control compared to all of the dies available from a silicon wafer. The issue is that the chip designer, in this case Qualcomm, still must pay up for all of the dies from a single wafer whether they pass QC or not.

At a 50% yield, Qualcomm would have to raise the prices of its Snapdragon chips to make up for the money it would have to pay Samsung for defective chips. A 3nm process node means that the chip uses smaller transistors allowing more to fit inside. The higher a chip's transistor count, the more energy-efficient and/or powerful the chip is.

]:"Samsung Foundry needs to get its yield rate up to get Qualcomm's Snapdragon chipset business says Korean report"] Samsung has delivered 3nm chips this year to a Chinese bitcoin company. But these chips were not made for smartphones and thus were easier to produce. Qualcomm used Samsung to produce the 5nm Snapdragon 8 Gen 1 application processor which was introduced in December 2021. But a yield rate as low as 35% forced Qualcomm to leave Samsung andand early rumors had both TSMC and Samsung involved in the production of the Snapdragon 8 Gen 4. The latter will be introduced in 2024.

 

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