The Snapdragon 8 Gen 3 is rumored to be mass-produced in the 3nm process, but a recent report claims that Qualcomm is unsure of its decision due to exigent circumstances. This could mean that Apple may be the only company to introduce a 3nm SoC this year and it is expected to be named A17 Bionic.
MediaTek also appears to be in the same position as Qualcomm, whose ‘unclear sales forecasts for Android devices’ have forced them to rethink their strategies for 2023.
With demand for smartphone sales declining, both Qualcomm and MediaTek need to reassess their business strategies for the remainder of 2023. There was a possibility that the majority of Snapdragon 8 Gen 3 orders would be awarded to TSMC due to its 80 percent share. rate of return, but according to DigiTimes, the San Diego chip maker may make the opposite decision.
In addition to dwindling smartphone sales, 3nm chips are said to cost up to $20,000. It could just mean that Qualcomm will have to sell shipments of Snapdragon 8 Gen 3 to smartphone partners at a higher price, potentially risking millions in sales as consumers can’t afford to be burdened by the high cost of living while also enjoying luxury flagship purchases.
Samsung can also supply Snapdragon 8 Gen 3 shipments with its 3nm GAA process, and it was also separately mentioned that Qualcomm was looking to adopt a two-sourcing strategy to get the best pricing. As wise as this business decision may be, the only drawback is Samsung’s current rate of return for its high-end manufacturing process, which reportedly sits at a bad 20 percent.
If Samsung is unable to improve its returns, Qualcomm will have no choice but to stick with TSMC for most of its Snapdragon 8 Gen 3 orders, and that means a little price concession. Based on this conundrum, Apple may have the advantage this year with its 3nm A17 Bionic and possibly increase the gap in performance and energy efficiency again in 2023. Hopefully, Qualcomm and MediaTek will find a solution that gives consumers access to next-generation devices, that too at a reasonable cost. .
News source: DigiTimes