Qualcomm is on the brink of a major shift with the upcoming release of the Snapdragon 8 Gen 4, slated for an official unveiling in October. This new system-on-chip (SoC) will feature custom-designed Oryon cores, highlighting Qualcomm’s move towards using its in-house CPU designs. However, this push for greater independence is expected to increase costs for smartphone manufacturers.
Following the trend set by Apple’s M-series chips, the Snapdragon 8 Gen 4 is rumored to utilize TSMC’s advanced 3nm process technology (N3E). This represents Qualcomm’s debut in using 3nm technology for its SoCs, promising improvements in performance and efficiency but also leading to higher production costs.
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According to Weibo insider Digital Chat Station, the wafer price for the Snapdragon 8 Gen 4 has risen, contributing to the overall cost increase of the SoC.
This price hike is likely to have significant repercussions in the smartphone market. As chip costs climb, manufacturers might need to adjust their devices’ specifications to maintain competitive pricing.
Flagship killer phones, which aim to offer high-end chips at lower prices, will be particularly affected. For instance, the Redmi K series, known for its affordability, might struggle to keep costs down. The Redmi K70 Pro, one of the most budget-friendly phones featuring the Snapdragon 8 Gen 3, may not replicate this affordability with its successor using the Snapdragon 8 Gen 4. Given that the Snapdragon 8 Gen 3 was already an expensive component, the Snapdragon 8 Gen 4 could pose a significant challenge for OEMs, forcing them to choose between cutting profit margins or increasing smartphone prices.
