Android Chipmakers Lose Millions as 2nm SoC Costs Top $300 Without Broad Chip Binning
Updated
Updated · Wccftech · May 18
Android Chipmakers Lose Millions as 2nm SoC Costs Top $300 Without Broad Chip Binning
2 articles · Updated · Wccftech · May 18
$300-plus 2nm smartphone chips and rising memory prices are squeezing Qualcomm and MediaTek, costing Android chipset makers millions in forgone savings and weaker margins.
Apple has long offset similar costs through chip binning—reusing partially disabled chips in cheaper devices instead of discarding them—an approach it has used since the 2010 A4 era.
The latest example is the MacBook Neo, which uses an A18 Pro with a 6-core CPU and 5-core GPU rather than the full 6-core CPU and 6-core GPU shipped in iPhone 16 Pro models.
Qualcomm has only limited evidence of similar tactics so far, including a 7-core Snapdragon 8 Elite variant, though a pared-down Snapdragon 8 Elite Gen 6 could expand that strategy.
MediaTek has not outlined comparable plans, leaving Android chip vendors more exposed to the current DRAM cost surge as flagship silicon gets pricier.
Apple profits from flawed chips. Can Android rivals copy this playbook to survive the ongoing memory crisis?
As AI drives up costs, are 'defective' processors the future of affordable phones?