Qualcomm’s move to TSMC’s advanced 3nm N3P node for its premium Snapdragon 8 Elite Gen 5 chip has increased manufacturing costs, forcing smartphone brands to either raise retail prices or make hardware compromises. The Snapdragon 8 Elite Gen 5 costs up to 27 percent more than its predecessor, with an estimated price between $240 and $280 per chip, compared to $220 for the Snapdragon 8 Elite. Smaller customers are likely to pay even more, while major partners like Samsung may secure discounts due to higher order volumes.
The upcoming Snapdragon 8 Elite Gen 6, which will be Qualcomm’s first mass-produced SoC on TSMC’s 2nm process, is expected to exceed $300 per chip. TSMC’s wafer prices are climbing, with 3nm N3P wafers now around $27,000 and 2nm wafers at $30,000, making cost reductions unlikely. As a result, Qualcomm is evaluating dual-sourcing production with Samsung’s 2nm GAA process to gain leverage in price negotiations and potentially control rising costs for future generations. Without additional suppliers, further price hikes for flagship Android devices are likely.
