Samsung and Qualcomm delay 2nm chip deal over price dispute

Talks between Samsung and Qualcomm to make 2nm processors are dragging on for a disagreement over price. Information from the South Korean industry indicates that the technical problems that had held back previous agreements have been reduced, but both companies have not yet closed commercial conditions.

The delay leaves in the air the possibility of starting production before the end of 2026. Negotiations could move to the next generation of processors if the current schedule no longer allows the chip to be manufactured in time for the phones in which it was to be used.

Qualcomm requests a reduction that Samsung does not accept

Qualcomm would have asked to reduce the manufacturing price proposed by Samsung. The South Korean foundry would not be willing to grant the discount, in part because the volume traded would not be high enough to compensate for lower conditions.

Samsung has used aggressively priced contracts in recent years to attract customers and keep its factories busy. The subsequent incorporation of companies such as Tesla and Broadcom would have allowed it to more carefully review the profitability of new orders.

Wafer pricing is especially sensitive in the leading nodes. Plants require expensive lithography equipment and manufacturing processes, while each customer needs to adapt and validate their design before going into production. Low volume spreads those costs over fewer units and limits the margin available for discounts.

Qualcomm also has reasons to look for a second source. The company relies on TSMC for its most advanced processors, and an alternative could give it greater bargaining power, additional availability and some protection against problems concentrated at a single supplier.

The existence of talks does not mean that Qualcomm has awarded Samsung a part of its next generation of Snapdragon. The contract remains unsigned and it has not been publicly confirmed which specific model would receive Samsung manufacturing.

The 2nm process would have achieved the necessary stability

The technical situation seems to have improved over previous attempts. Qualcomm used Samsung factories for high-end processors until 2021, but later moved its main orders to TSMC after encountering performance and production difficulties.

Current information indicates that the 2nm process evaluated by Qualcomm has achieved a sufficient degree of stability. Samsung uses GAA transistors in this generation and has the SF2 and SF2P variants, also associated with its future Exynos 2600 and Exynos 2700 processors.

Positive reviews of those designs would have helped demonstrate the progress of the technology. Even so, Passing a technical evaluation does not guarantee that the contract is competitive in price, volume, energy consumption or delivery dates.

Manufacturing performance remains a decisive piece. A low percentage of functional chips makes each usable unit more expensive, while an improvement in performance allows the cost of the wafer to be spread over a greater number of processors. The exact figures obtained by Samsung in the Qualcomm project have not been published.

The calendar may postpone the agreement until 2027

Smartphone processors must enter production early enough to complete packaging, testing, and integration into commercial devices. A prolonged negotiation can leave the calendar of the product initially considered without margin.

Industry sources contemplate manufacturing being postponed until 2027 or going directly to a later processor. TSMC would have already received the initial order, so Samsung could participate as a second foundry if an agreement is finally reached.

That formula would require the design to be prepared for both processes. Although two factories use the commercial name 2 nm, their libraries, physical rules and electrical characteristics are different. Qualcomm would have to validate each version separatelywith the corresponding engineering work.

The negotiation shows that The current obstacle is found in the economic conditions and the volumewhile Samsung’s technology would have received a favorable evaluation. The contract signature, the official identification of the processor and a production date are still missing.

Samsung and Qualcomm have not publicly announced a 2nm manufacturing deal. The information available maintains that talks continue and that the lack of consensus on the price may prevent the project from reaching production during 2026.