- Qualcomm and Samsung are reportedly stuck over the price of a potential 2nm chip manufacturing deal.
- Qualcomm wants lower manufacturing costs, while Samsung appears reluctant to reduce its pricing.
- A delay in the agreement could push Qualcomm’s 2nm chip production into 2027.
- Samsung is expanding its foundry business through major AI chip deals, including a reported agreement with Broadcom worth more than $200 billion.
Qualcomm and Samsung Electronics appear to have hit an unexpected roadblock in talks over a potential 2nm chip manufacturing deal, with the price of production now emerging as the biggest sticking point.
The two companies are reportedly negotiating terms for Qualcomm to use Samsung’s advanced 2nm foundry process for future chips. While the arrangement could give Samsung another major customer for its next generation manufacturing technology, Qualcomm is understood to be pushing for more competitive pricing before committing to the deal.
The disagreement could have wider implications for both companies. Qualcomm is looking for a manufacturing partner that can deliver advanced chips at a cost that makes sense for its future processors, while Samsung is trying to strengthen its position in an increasingly competitive foundry market.
If the companies cannot settle their differences soon, Qualcomm’s next generation chips could face a delay in moving into production, with manufacturing potentially pushed into 2027.
Pricing becomes the biggest obstacle
At the heart of the negotiations is a familiar problem in the semiconductor industry: advanced manufacturing is expensive, and chip designers have to balance performance gains against production costs.
Qualcomm is reportedly seeking better manufacturing economics from Samsung as it considers using the company’s 2nm process. For Qualcomm, the decision is not simply about gaining access to a newer manufacturing technology. The cost of producing millions of processors is a critical part of determining how attractive the agreement will be.
Samsung, meanwhile, has invested heavily in developing its advanced foundry capabilities. The company is attempting to compete more aggressively with leading contract chip manufacturers and needs major customers to justify the enormous investment required to develop and operate cutting edge production facilities.
That leaves both sides with different priorities. Qualcomm wants attractive pricing and reliable manufacturing, while Samsung has an incentive to protect the value of its advanced foundry technology.
The result is a negotiation that appears to be taking longer than expected.
Samsung wants to rebuild its Qualcomm relationship
A successful agreement would be particularly significant for Samsung because Qualcomm has reduced its reliance on Samsung’s foundry operations in recent years.
The two companies have a long history of working together on advanced mobile processors, but Qualcomm moved some of its chip production away from Samsung after 2021. Winning new Qualcomm business would therefore represent an important step for Samsung as it attempts to rebuild its position among major semiconductor customers.
Qualcomm’s interest in Samsung also highlights the importance of having multiple options for advanced chip manufacturing. The semiconductor industry has become increasingly dependent on a small number of companies capable of producing processors using the latest process technologies.
For Qualcomm, having access to Samsung’s 2nm manufacturing could provide another option as it prepares future generations of application processors.
For Samsung, securing Qualcomm as a customer would provide another high profile name for its foundry business and potentially demonstrate that its latest process technology can attract major chip designers.
Broadcom deal adds pressure on Samsung
Samsung’s negotiations with Qualcomm are taking place as the company expands its foundry business and takes on larger commitments from other technology companies.
In July, Samsung agreed to a multiyear artificial intelligence chip arrangement with Broadcom that was reported to be worth more than $200 billion through 2030. The agreement covers advanced manufacturing and packaging technologies and represents a major commitment to Samsung’s semiconductor operations.
That deal could strengthen Samsung’s position when negotiating with other customers. Large and long term commitments give a foundry greater visibility over future production and can make it easier to plan capacity and investment.
It could also explain why Samsung is reportedly less willing to make major pricing concessions to Qualcomm.
For Qualcomm, however, the calculation is different. The company needs to determine whether Samsung’s technology and manufacturing capabilities justify the price being discussed, particularly when it has other options within the global semiconductor manufacturing ecosystem.
A 2027 production timeline could be affected
The immediate concern is timing.
Qualcomm is expected to continue developing future generations of its processors, but moving a chip from design to mass production requires manufacturers to settle important technical and commercial details well in advance.
A prolonged pricing dispute could therefore affect the schedule for Qualcomm’s future chips. If an agreement with Samsung takes longer to finalize, production using the 2nm process could potentially be delayed until 2027.
That does not necessarily mean Qualcomm will abandon Samsung. The talks could still result in an agreement if both companies find a price that works for their respective businesses.
It is also important to note that neither Qualcomm nor Samsung had officially confirmed the reported delay at the time of the report.
The situation remains a negotiation rather than a definitive cancellation. Samsung has strong reasons to secure Qualcomm’s business, while Qualcomm has an obvious interest in accessing advanced manufacturing capacity.
The bigger question is whether the two companies can bridge the gap on pricing without affecting the development schedule for Qualcomm’s next generation processors.
For Samsung, winning the deal would strengthen its foundry ambitions and help repair an important customer relationship. For Qualcomm, the decision will ultimately come down to whether Samsung’s 2nm technology can be delivered at a price that makes commercial sense.
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