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Qualcomm is preparing for a major transition with the upcoming Snapdragon 8 Gen 4, set to be officially unveiled in October. The new SoC will feature in-house CPU designs with custom Oryon cores. However, the shift towards independence may come at a cost for smartphone manufacturers.

Similar to Apple’s M-series chips, the Snapdragon 8 Gen 4 is rumored to use TSMC’s advanced 3nm process (N3E). It will be the first time Qualcomm will leverage 3nm technology for its SoCs and while that should deliver improved performance and efficiency, it will lead to higher production costs. 

That’s according to Weibo tipster Digital Chat Station who recently revealed that the wafer price of the Snapdragon 8 Gen 4 has increased, which will directly impact the final cost of the SoC.

This price hike wouldn’t be entirely surprising. Qualcomm had previously hinted at a higher price point for the Snapdragon 8 Gen 4 due to the adoption of Oryon cores.

This price hike could have a domino effect on the smartphone market. With a more expensive chip, phone makers might have to carefully consider their devices’ overall configurations to maintain competitive pricing.

For example, last year’s Redmi K70 Pro, powered by the Snapdragon 8 Gen 3, was one of the most affordable flagships. However, with a pricier Snapdragon 8 Gen 4, achieving a similar price point for its successor could be challenging for companies like Xiaomi.

It’s worth noting that even the Snapdragon 8 Gen 3 wasn’t cheap for manufacturers, reportedly costing around $200 per unit. A further price increase for the Gen 4 could put phone makers in a difficult position, forcing them to choose between sacrificing their profit margins or potentially increasing the end price for consumers.

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