[News] Samsung Nears Qualcomm 2nm Deal as Foundry Recovery Gains Momentum

According to a report from South Korean outlet Business Post, Samsung Electronics appears close to securing Qualcomm as the first major customer for its next-generation 2nm foundry process. This development could mark a significant step toward reviving Samsung’s struggling contract chip manufacturing business, which has faced ongoing yield issues and lost key clients to TSMC.

Qualcomm is reportedly conducting mass production tests using Samsung’s 2nm technology for several chips, including a premium version of its upcoming Snapdragon 8 Elite 2 mobile processor. The chip, codenamed “Kaanapali,” will come in two variants. The base version is expected to be produced by TSMC using its 3nm process, while the higher-end “Kaanapali S” is currently undergoing validation on Samsung’s 2nm node.

Samsung’s version is expected to debut in the Galaxy S26 smartphone series early next year, with volume production starting in the first quarter of 2026. The same Business Post report also notes that Qualcomm is testing another chip on Samsung’s 2nm line under the codename “Trailblazer.” This chip is believed to be a high-performance processor intended for automotive or supercomputing applications.

Yield Improvements Key to Recovery

Samsung’s foundry division has struggled with poor yields on advanced processes. Earlier this year, the yield rate for its 2nm process was around 30 percent. Recent progress has reportedly pushed it above 40 percent. The company aims to reach at least 60 percent yield in the second half of 2025, a level generally considered necessary for profitable mass production.

The failure to stabilize yields at the 3nm node resulted in Samsung losing key accounts, including Apple, NVIDIA, and Google, to TSMC. According to first-quarter 2025 data from TrendForce, TSMC leads the global foundry market with a 67.6 percent share. Samsung’s market share slipped slightly to 7.7 percent. Its decline is attributed to a combination of limited benefit from China’s consumer subsidies and U.S. export restrictions that prevent advanced process orders from Chinese clients.

Samsung is now focused on stabilizing its current advanced nodes, particularly 2nm and 4nm. According to ZDNet, the company has postponed the rollout of its 1.4nm technology. Originally scheduled for 2027, the launch is now expected sometime after 2028, possibly in 2029.

(Photo credit: Samsung)