Qualcomm (QCOM) is in talks with Samsung Electronics for contract manufacturing of 2-nanometer chips, signaling potential supply chain diversification away from Taiwan Semiconductor.
The discussions could mark Qualcomm’s return to Samsung’s most advanced foundry services, potentially reducing its reliance on TSMC for cutting-edge processor production.
Key Takeaways
- Qualcomm discusses 2nm chip manufacturing contract with Samsung foundry
- Deal would diversify supply chain beyond current TSMC dependency
- Samsung positioned first among several foundry partners under consideration
Market reaction & context
The potential partnership represents a significant shift in the semiconductor foundry landscape, where Taiwan Semiconductor Manufacturing Company currently dominates advanced chip production. Samsung’s foundry business has been working to compete with TSMC’s leading-edge processes, particularly in the critical 2-nanometer technology node that represents the industry’s next generation of chips.
Qualcomm CEO Cristiano Amon said the company was holding talks first with Samsung Electronics among several semiconductor foundry firms about the manufacturing partnership 1. The discussions focus specifically on production of 2-nanometer application processor chips, which would power future smartphones and other mobile devices.
Strategic implications
The potential Samsung deal would mark Qualcomm’s return to the South Korean company’s most advanced manufacturing processes. Samsung’s foundry division has invested heavily in 2-nanometer technology development as it seeks to challenge TSMC’s market leadership in advanced semiconductor manufacturing.
For Samsung, securing a major customer like Qualcomm for its 2-nanometer process could provide crucial revenue and validation for its foundry technology. The partnership would also strengthen Samsung’s position against TSMC, which currently manufactures chips for major clients including Apple and Nvidia.
Supply chain diversification
The talks reflect broader industry efforts to diversify semiconductor supply chains beyond Taiwan, particularly as geopolitical tensions have highlighted the risks of concentrated production. Qualcomm’s exploration of Samsung as a manufacturing partner could provide the company with greater supply security and potentially more favorable pricing terms.
The 2-nanometer process represents the cutting edge of semiconductor manufacturing technology, offering improved performance and power efficiency compared to current 3-nanometer and 5-nanometer processes. Both Samsung and TSMC are racing to bring 2-nanometer production to market, with initial commercial production expected in the coming years.
Industry outlook
The semiconductor foundry market continues to evolve as companies seek to reduce supply chain risks while accessing the most advanced manufacturing capabilities. Samsung’s foundry business has been working to expand its customer base beyond its own smartphone and memory divisions.
If finalized, the Qualcomm-Samsung partnership could reshape competitive dynamics in the foundry market and provide both companies with strategic advantages in the critical mobile processor segment.
Not investment advice. For informational purposes only.
References
1(2026-01-07). “Qualcomm in talks with Samsung Electronics for contract manufacturing, South Korean newspaper says”. Reuters. Retrieved January 7, 2026.
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5(2026-01-07). “Qualcomm in talks with Samsung Electronics for contract manufacturing”. Global Banking and Finance. Retrieved January 7, 2026.
6(2026-01-07). “Qualcomm to manufacture 2 nm AP chips at Samsung foundry to diversify supply”. KED Global. Retrieved January 7, 2026.
7(2026-01-07). “Qualcomm, Samsung in discussions over 2nm chip deal”. Daily Jang. Retrieved January 7, 2026.
8(2026-01-07). “Qualcomm in Talks With Samsung For Contract Manufacturing of 2 Nanometre Chips”. Deccan Chronicle. Retrieved January 7, 2026.
9(2026-01-07). “Qualcomm in talks with Samsung Electronics for contract manufacturing: Report”. Economic Times. Retrieved January 7, 2026.