Qualcomm Inc. announced that it is in advanced talks with Samsung Electronics to contract‑manufacture its next‑generation 2‑nanometer chips. The discussion was confirmed by Qualcomm CEO Cristiano Amon during the CES 2026 event and reported by Reuters on the same day. Samsung’s 2‑nm process, which is in the same technology generation as TSMC’s N2 node that began volume production in Q4 2025, would give Qualcomm access to a cutting‑edge fabrication platform that can deliver 10‑15% performance gains and 25‑30% power savings over the current 3‑nm nodes.
The partnership is part of Qualcomm’s broader diversification strategy, which aims to reduce dependence on a single foundry and to secure a reliable supply of high‑performance chips for its flagship Snapdragon 8 Elite Gen 5 processor and emerging AI workloads. By securing a second major foundry, Qualcomm can negotiate better pricing, mitigate supply‑chain disruptions, and accelerate time‑to‑market for its most advanced products. Samsung’s foundry business, which has historically been loss‑making, stands to benefit from a high‑value contract that could help it regain profitability and compete more effectively against TSMC and Intel’s advanced nodes.
Samsung’s co‑CEO and chip chief Jun Young‑hyun said the company’s recent supply deals with major customers had left its loss‑making foundry business “primed for a great leap forward.” The potential Qualcomm contract would complement Samsung’s $16.5 billion AI‑chip deal with Tesla, which runs through 2033, and would further diversify its customer base. Samsung’s 2‑nm wafers are expected to cost around $30,000 each, a premium that justifies the focus on premium flagship devices and high‑margin AI applications.
Qualcomm’s recent financial performance underscores the strategic importance of the talks. In Q4 FY2025, the company reported revenue of $11.27 billion and a non‑GAAP EPS of $3.00, beating analyst expectations by $0.24. The QCT segment—handsets, automotive, IoT, and licensing—generated $11.27 billion in revenue, with handsets contributing $6.96 billion. In Q1 FY2025, revenue rose to $11.67 billion and non‑GAAP EPS reached $3.41. For Q1 FY2026, Qualcomm guided for revenue of $11.8 billion to $12.6 billion and EPS of $3.30 to $3.50, reflecting confidence in continued demand for its high‑performance chips and the expected benefits of a diversified foundry portfolio.
Investors welcomed the news, seeing it as a boost to Samsung’s foundry business and a strategic win for Qualcomm’s supply‑chain resilience. The market reaction to Qualcomm’s announcement remained muted, reflecting the strategic nature of the talks rather than an immediate financial impact. The partnership signals a shift in the competitive dynamics of the 2‑nm node race, with Samsung positioned to capture a larger share of premium chip orders and Qualcomm poised to secure a more reliable supply of advanced process technology.
In summary, the Qualcomm‑Samsung talks represent a significant milestone in the semiconductor industry’s transition to 2‑nanometer manufacturing. The collaboration could accelerate the launch of Qualcomm’s flagship processors, strengthen Samsung’s foundry revenue mix, and intensify competition with TSMC in the high‑end node market. The partnership also highlights the growing importance of supply‑chain diversification for chip designers amid ongoing geopolitical and capacity constraints.
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