MediaTek also appears to be in the same boat as Qualcomm, as ‘unclear sales prospects for Android handsets’ have forced them to re-think their strategies for 2023
As demand for smartphone sales decline, both Qualcomm and MediaTek need to re-evaluate their business strategies for the remainder of 2023. There was a possibility that the majority of the Snapdragon 8 Gen 3 orders would be given to TSMC due to its exceptional 80 percent yield rate, but according to DigiTimes, the San Diego chipset maker might take a backfoot on its decision. In addition to dwindling smartphone sales, the cost of 3nm wafers is said to be $20,000. This can only mean that Qualcomm will be forced to sell its Snapdragon 8 Gen 3 shipments to smartphone partners at a higher price, risking potentially millions in sales as consumers cannot burden themselves with the high cost of living while also entertaining luxurious flagship purchases. Samsung could also provide Snapdragon 8 Gen 3 shipments through its 3nm GAA process, as a separate stated that Qualcomm was looking to adopt a dual-sourcing strategy to get the best pricing. As prudent as this business decision may be, the only drawback is Samsung’s current yield rate for its cutting-edge manufacturing process, which is said to be sitting at an abysmal 20 percent. If Samsung is unable to improve its yields, Qualcomm will have no choice but to stick with TSMC for the majority of Snapdragon 8 Gen 3 orders, and that means little to no price concession. Based on this conundrum, Apple may have an advantage this year with its 3nm A17 Bionic and possibly increase the performance and power efficiency gap once more in 2023. Hopefully, both Qualcomm and MediaTek will find a solution where consumers get access to next-generation hardware, and that too, at a reasonable cost. News Source: DigiTimes
