In a big breakthrough Qualcomm plans to have its next-generation Snapdragon 820 processor to be manufactured at Samsung’s chip-making plants.
Previously, Qualcomm has manufactured its leading-edge chips largely at contract chip maker Taiwan Semiconductor Manufacturing Co. as well as other foundries. However, Samsung has had an edge over TSMC and other chip plants because it is cranking out chips using thinner 14-nanometer wiring, compared with 20-nanometer transistors at TSMC. All other things being equal, thinner wires mean smaller and less costly chips as well as better battery performance.
It was seen by Qualcomm that Samsung Galaxy S6 was made by Samsung own developed chip Exynos and outraged its Snapdragon 810 .As a result, Qualcomm had to cut its financial outlook for the year even as the 810 won a spot in other flagship products, such as the latest HTC One and LG Flex 2.
The Snapdragon 820 is the next generation of Qualcomm’s top-end chip family, designed fom the leading phone makers. Qualcomm is hoping that the move to use Samsung’s factories will help it win back business for the next Galaxy S flagship, the sources said. Qualcomm declined to comment on its manufacturing plans for the chip.