October 3, 2023
New Delhi

Joining Qualcomm and TSMC May Cause Samsung in Trouble

Joining Qualcomm and TSMC May Cause Samsung in Trouble

(Epidemic) has had a significant impact on the chip market across the country (or across the continent). There is a global shortage of microcrystals that has never been seen before. While the big players in the industry are taking steps to improve the situation, this deficit is far from over.

Qualcomm may be the largest supplier of mobile chipsets, but it relies entirely on third-party manufacturers. The company does not have its own manufacturing facilities, so companies like Samsung and TSMC will have to provide manufacturing facilities. The latest deal with TSMC could cause problems for Samsung.

TSMC offers Qualcomm unparalleled flexibility

Qualcomm releases its high-performance chipset from both Samsung and TSMC. The company opted for the latter for the 2010 and 2020 chips but returned to Samsung for the Snapdragon 888. It was reported last month that Samsung will release its next-gen flagship processor, despite rumors that Qualcomm may return to TSMC.

Problems in the microcircuit market can only arise due to a lack of production capacity. It also lacks packaging pads and plates. All of these challenges force companies to evaluate their policies to avoid future disruptions.

Industry sources say TSMC and Qualcomm are taking a big step to further strengthen their relationship. Despite the non-crowded production capacity, TSMC has agreed to prioritize the production of batches of high-performance 5G chips for Qualcomm. Exactly what chips TSMC decided to use remains unknown, but it is clear that the Taiwanese manufacturer will provide Qualcomm with this unprecedented advantage.

Was this grace done at the expense of Samsung? Does this mean that Qualcomm will eventually get its next general flagship chipset from TSMC? Even if that doesn’t happen, Samsung may try to cover enough Qualcomm chipsets for its new flagship next year.

Chip shortages have already forced Samsung to cancel the Galaxy Note 21. As the company maintains the Exynos / Qualcomm split in its flagships, insufficient supply from Qualcomm could force Samsung to adjust its product line in 2022.

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