55%
Plausible
TSMC’s slightly advanced 2nm ‘N2P’ process has been reported to be utilized by Qualcomm and MediaTek this year, as both companies seemingly want to obtain an edge over Apple’s A20 and A20 Pro. The advantage of moving to an improved node is that these Android chipset manufacturers can target a higher clock speed for increased single-core and multi-core performance. The drawback is that shifting to this technology can risk mass adoption from smartphone makers due to the major cost increases.
The first 2nm chipsets from Qualcomm and MediaTek could cost 20 percent more than current SoCs, but it’s likely that these companies have prepared for this event
Given that the Snapdragon 8 Elite Gen 5 was estimated to cost $280 per unit, it was clear that Qualcomm would always experience an uphill battle in getting its smartphone partners to adopt the Snapdragon 8 Elite Gen 6 Pro. Instead, the San Diego firm will likely have to settle with aggressively marketing the standard Snapdragon 8 Elite Gen 6, which is said to be found in a higher volume of smartphones due to its lower price.
MediaTek is likely to face the same adoption obstacle with its Dimensity 9600, with Weibo’s Smart Chip Insider stating that both companies have developed a passion to beat Apple in the chipset performance race to the extent that they’ve shifted to TSMC’s 2nm ‘N2P’ process to achieve this feat. While the tipster says that the performance gap will be reduced, the next-generation SoCs are expected to be 20 percent more expensive than current models.
Seeing as the DRAM shortage has already crippled smartphone companies’ margins, they likely don’t want to risk further damage to their profits by shifting to expensive mobile SoCs. Qualcomm likely anticipated this shift, which is why the latter is rumored to have a stacked 2nm and 3nm lineup this year, which includes keeping the Snapdragon 8 Elite Gen 5 while offering a newer Snapdragon 8 Gen 6 to replace the Snapdragon 8 Gen 5.
Currently, there’s no word on what MediaTek intends to do, but we could see the Taiwanese fabless semiconductor manufacturer bring TSMC’s 3nm process to its non-flagship chipset options to boost its revenue stream. After all, how long can both companies depend on their flagship chain to keep them afloat?
News Source: Smart Chip Insider
About the author: Omar Sohail is a reporter and analyst for Wccftech's mobile section, specializing in the technology and business of the mobile industry. His expertise lies in the intricate hardware supply chain, covering developments in semiconductor manufacturing, chip lithography, and camera sensor technology.
Follow Wccftech on Google to get more of our news coverage in your feeds.
