50%
Plausible
The 2nm node is expected to be the most cutting-edge lithography the industry has ever laid eyes on, with none other than TSMC leading from the front with orders secured for AI chips and mobile SoCs. Unfortunately, the complexities of mass-producing these advanced wafers at a monumental scale pose a major challenge for multiple smartphone companies planning to use these chipsets in their devices. In fact, one tipster suggests that TSMC will partly be responsible for firms introducing silicon downgrades to their handsets later this year, with the other culprit being the DRAM crisis.
The advanced 2nm process has ‘insufficient yields,’ with TSMC facing a supply crunch that will force smartphone makers to reserve top-end SoCs for ‘Ultra’ models only
Despite the fact that TSMC has managed to achieve yields favorable for mass producing 2nm wafers, Weibo tipster Digital Chat Station states that these numbers are insufficient and are forcing smartphone manufacturers to bring chipset downgrades into the mix. While the Taiwanese semiconductor titan’s name wasn’t explicitly mentioned, which other company comes to mind when tasked with manufacturing advanced nodes?
The only alternative is Samsung, and given that the latter is struggling worse than TSMC in bringing up its 2nm GAA yields, it cannot be in the same conversation as its rival. Due to the reasons mentioned above, smartphone companies are being forced to compromise on using the top-tier 2nm chipset in handsets with the ‘Ultra’ or ‘Pro Max’ moniker.
This would explain why Qualcomm has been rumored on multiple occasions to introduce the Snapdragon 8 Elite Gen 6 and Snapdragon 8 Elite Gen 6 Pro as part of its dual-chipset launch strategy, with Apple also maintaining a similar approach with its A20 and A20 Pro. The more affordable SoCs will be reserved for the less premium handsets.
Unsurprisingly, even MediaTek aims to give smartphone makers an option with its Dimensity 9600 and Dimensity 9600 Pro, with the more expensive and capable silicon undoubtedly reserved for the crème de la crème lineup.
To be fair, it’s not entirely TSMC’s fault, because the customers leveraging the 2nm technology are at complete liberty to undercut the competition, lower their margins, and charge a lower sum for their chipsets. Unfortunately, this isn’t going to be a reality, especially since Qualcomm’s current-generation Snapdragon 8 Elite Gen 5 is estimated to be priced at $280 per unit.
News Source: Digital Chat Station
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.
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