Samsung Electronics’ foundry division is reportedly near securing Qualcomm as its first major 2-nanometer customer, potentially marking a turning point for the struggling contract chipmaking business that has hemorrhaged market share to Taiwan Semiconductor Manufacturing Co.
The South Korean company is conducting production tests for Qualcomm’s next-generation Snapdragon 8 Elite 2 mobile processor under the “Kaanapali” project, according to industry sources cited by Business Post. While the basic version will use TSMC’s 3nm technology, a premium “Kaanapali S” variant may tap Samsung’s 2nm process for the Galaxy S26 series launching early next year.
Samsung’s foundry unit has been fighting an uphill battle after yield problems with its 3nm process drove away key customers including Apple, Nvidia and Google. The division’s market share plummeted to 7.7% in the first quarter while TSMC’s reached 67.6% – a staggering 59.9 percentage-point gap.
The company’s 2nm process yield has improved from roughly 30% earlier this year to over 40% recently, though it needs to reach 60% for profitable mass production. Samsung has delayed its 1.4nm development timeline to 2028 to focus resources on stabilizing the 2nm node.
Samsung’s $17 billion Texas foundry facility, originally scheduled for 2024, now targets production by late 2026. The company recently secured Nintendo’s Switch 2 chip contract from TSMC, suggesting some momentum in winning back business from its larger rival.
