Moving to TSMC and its 3nm ‘N3P’ node for its premium products like the Snapdragon 8 Elite Gen 5 has given Qualcomm the opportunity to compete with titans like Apple, but at a literal cost. Last year, the Snapdragon 8 Elite was the industry’s first 3nm chipset designed for Android flagships, and it was an expensive piece of silicon for phone partners to use in their devices.
Now, the same Qualcomm customers will have to either raise the prices of their smartphones or be forced to make compromises because the latest estimates reveal that the Snapdragon 8 Elite Gen 5 is 27 percent more expensive than the Snapdragon 8 Elite. To make matters worse, the Snapdragon 8 Elite Gen 6 is not expected to provide any financial relief, thanks to a direct consequence of Qualcomm moving to TSMC’s 2nm architecture.
Looking at Snapdragon 8 Elite Gen 5’s estimated price of $280, the Snapdragon 8 Elite Gen 6 could easily cross $300, making Qualcomm’s dual-sourcing strategy more crucial now
On X, Abhishek Yadav has shared the estimated prices of each of Qualcomm’s flagship smartphone chipset, going all the way back to the Snapdragon 8 Gen 1. With the Snapdragon 8 Elite carrying a $220 price, we are looking at up to a 27 percent increase with the Snapdragon 8 Elite Gen 5, as it is estimated to cost anywhere between $240 and $280.
Of course, the final figure depends on various factors, such as negotiations between Qualcomm and its partners behind closed doors, different order volumes, and more. However, those who place a smaller order with the company are likely to pay the premium, with Samsung expected to receive a higher discount because of the number of flagship units it ships in a calendar year.
The latest Snapdragon 8 Elite Gen 5 price also explains why Qualcomm is currently evaluating the Samsung-made version of its flagship SoC on the 2nm GAA process. By bringing the Korean foundry on board, the chipset manufacturer will have better leverage for negotiating with TSMC, which is an edge that Qualcomm absolutely needs if it is to bring those prices down for when it announces the Snapdragon 8 Elite Gen 6, its first SoC mass produced on TSMC’s 2nm process.
The Snapdragon 8 Elite Gen 5 could become more expensive, as TSMC is reported to raise the prices of its 3nm ‘N3P’ wafers
Qualcomm and MediaTek were previously said to have paid TSMC a 24 percent higher sum for the Snapdragon 8 Elite Gen 5 and Dimensity 9500, implying that wafer prices had already increased prior to the official announcements. However, a new report states that TSMC is bringing a price hike to its older 3nm ‘N3E’ and 3nm ‘N3P’ nodes, with each wafer estimated to cost $25,000 and $27,000, respectively.
As for 2nm wafers, the $30,000 figure will reportedly remain unchanged, but since it is more expensive than any of TSMC’s 3nm variants, Qualcomm will have little choice but to price its Snapdragon 8 Elite Gen 6 beyond the $300 threshold unless Samsung joins the San Diego firm’s supply chain.
News Source: Abhishek Yadav
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