Recently, Samsung and Qualcomm have launched a series of cooperation, each based on their own interests. The former needs to find large customers to support production capacity to support the development of new processes in order to catch up with TSMC. Since Qualcomm does not have its own fab, it will continue to evaluate third-party foundries to confirm which foundries will produce new chips to ensure that the designed chips can be released on time, and at the same time, to allow yourself to get higher profits from new orders.
Samsung is currently completing Qualcomm’s orders, including Qualcomm’s current strongest Snapdragon 888 and the latest Snapdragon 780, which are manufactured using Samsung’s 5nm process. According to Wccftech, Qualcomm has recently placed a batch of urgent orders for high-end 5G chips from TSMC. Although TSMC’s production capacity is already very tight, it has accepted Qualcomm’s request. It is not clear what products this batch of high-end 5G chips refers to, and the specific delivery quantity and time are also unclear.
These orders will alleviate the shortage of Qualcomm chips and consolidate the cooperative relationship between the two parties. Recently, due to Samsung’s 5nm process capacity problems, Qualcomm’s chip shortage has caused Qualcomm’s financial report to fall short of expectations. This may have triggered Qualcomm’s turn to TSMC to seek help to get out of the predicament. The current chip shortage has caused a chain reaction in the smartphone industry.