According to revelations from blogger Digital Chat Station on September 29th, next year’s Qualcomm Snapdragon 8 Gen6 (SM8950) and Snapdragon 8 Elite Gen6 (SM8975) will comprehensively upgrade to a 2nm process. These chips will be positioned higher, marking Qualcomm’s first 2nm mobile processor.
The leaks suggest that the Snapdragon 8 Gen6 series will continue to be manufactured by TSMC, utilizing their new N2 process (2nm node) for the first time. Compared to the N3E process, the N2 process is expected to deliver a 10% to 15% performance improvement at the same power consumption, or a 25% to 30% reduction in power consumption at the same frequency. Additionally, transistor density is projected to increase by 15%.
With the advent of the 2nm era, TSMC’s pricing is set to climb further. Reports indicate that the price of each 2nm wafer could exceed $30,000, surpassing previous estimates of $25,000. For context, 3nm wafers currently cost around $18,500 to $20,000, while 4/5nm wafers are priced between $15,000 and $16,000.
This significant increase in manufacturing costs implies that flagship smartphones equipped with the Snapdragon 8 Gen6 series processors are likely to trigger a wave of price hikes. A similar trend was observed last October when Qualcomm’s Snapdragon 8 Elite and MediaTek’s Dimensity 9400 chips adopted TSMC’s 3nm process, leading to a collective price increase across domestic Chinese flagship models. The upcoming iteration of flagship devices is therefore expected to face a new round of price adjustments.
The adoption of advanced manufacturing processes like 2nm is a double-edged sword for the consumer electronics market. On one hand, it represents a significant leap in performance and efficiency, enabling more powerful and sophisticated mobile experiences. This can translate to better battery life, faster app loading times, enhanced gaming capabilities, and the seamless integration of AI features. On the other hand, the escalating costs associated with these cutting-edge nodes are inevitably passed on to consumers. As chip manufacturers invest heavily in research and development and the highly complex infrastructure required for leading-edge fabrication, the per-wafer costs rise substantially. This directly impacts the Bill of Materials (BOM) for smartphone manufacturers, compelling them to adjust their pricing strategies to maintain profit margins. As such, consumers eager for the latest technological advancements may need to budget more for their next flagship device.
