Qualcomm in Talks with Samsung Electronics for Contract Manufacturing
Qualcomm is in talks with Samsung Electronics over contract manufacturing of two-nanometer chips, the U.S. Company’s chief executive Cristiano says.
According to reports, Amon as saying that Qualcomm was holding discussions first with Samsung Electronics, among several semiconductor foundry firms, regarding contract manufacturing using the latest two-nanometer process. The design work for the chips has already been completed, with commercialization expected in the near future.
Qualcomm was not immediately available for comment outside regular business hours, while Samsung Electronics said it does not comment on specific customers.
If finalized, the deal would mark a significant step for Samsung as it seeks to strengthen its position in the global foundry market, where it trails Taiwan Semiconductor Manufacturing Co (TSMC). Samsung has been investing heavily in advanced chipmaking technologies, including next-generation nodes such as two nanometers, to attract major global clients.
Samsung Electronics’ co-CEO and head of its semiconductor division, Jun Young-hyun, said last week that recent supply agreements with major customers had left the company’s loss-making foundry business “primed for a great leap forward.” In July, Samsung signed a $16.5 billion contract with Tesla to supply chips, boosting optimism around its contract manufacturing operations.
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For Qualcomm, securing access to two-nanometer manufacturing capacity is seen as crucial as competition intensifies in the premium smartphone, automotive, and artificial intelligence chip segments. Advanced manufacturing processes allow chip designers to deliver improved performance, power efficiency, and higher transistor density, giving them an edge in increasingly demanding applications.
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Industry analysts note that while TSMC remains the dominant player in cutting-edge chip production, Samsung’s push into two-nanometer technology could help diversify supply chains and offer major chip designers alternative manufacturing partners. The talks underscore the strategic importance of advanced semiconductors as global demand continues to rise across multiple sectors.