Jenith
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Samsung's in-house chip design division has been working on its first 2nm chip, the Exynos 2600. However, the company's smartphone division is still deciding whether to use the chip in the Galaxy S26 series. There are two reasons Samsung wants the Exynos chip to succeed.
According to a report from NewSis, Samsung spent close to KRW 7.8 trillion (~$5.57 billion) on chips in the first half of this year. That is 30% more than last year when it spent KRW 6.02 trillion (~$4.3 billion), and that is largely because it exclusively used Qualcomm's Snapdragon chips in the Galaxy S25 series. Last year, it used a mix of Exynos and Snapdragon chips in the Galaxy S24 series.
https://www.imeisource.com/wp-content/uploads/2024/10/Qualcomm-Snapdragon-8-Elite-4.jpg
Snapdragon chips are more expensive than similar Exynos chips, and the next-generation Snapdragon chip is reportedly even pricier. To address this, Samsung MX (Samsung's smartphone division) plans to use the Exynos 2600 chip in at least some Galaxy S26 series models. This move not only reduces the overall cost burden but also offers Samsung an opportunity to negotiate better prices when purchasing chips Snapdragon from Qualcomm.
This way, the company can make sure it isn't forced to increase the price of Galaxy S26 series phones compared to the Galaxy S25 series. However, the big question is, will Samsung actually use the Exynos 2600 in the Galaxy S26?
Won-joon Choi, the COO of Samsung MX, recently said, “The evaluation (of the Exynos 2600) is proceeding as planned. The evaluation process is not yet complete and is currently ongoing.” This implies that Samsung still hasn't finished testing the Exynos 2600 in prototype Galaxy S26 phones, as the launch is still at least five months away. The South Korean firm could make its decision in the next couple of months.
https://www.imeisource.com/wp-content/uploads/2022/06/Samsung-Foundry-3nm-Semiconductor-Chip-Wafer.jpg
Samsung Foundry's 3nm semiconductor chip wafer / Image Credits: Samsung
Samsung's semiconductor chip manufacturing business, Samsung Foundry, has been struggling in recent years. However, they recently secured a $16.5 billion contract with Tesla to fabricate 2nm ‘AI6' chips for the electric carmaker. The performance of the Exynos 2600 chip will determine how well-prepared Samsung is before it starts manufacturing Tesla's AI chips.
If the Exynos 2600 proves successful, it will significantly improve Samsung's smartphone business profitability and help secure more semiconductor chip orders from major chip firms like AMD, Nvidia, and Qualcomm. This is precisely why Samsung needs the Exynos chip to succeed.
The post Why Samsung needs its in-house Exynos 2600 chip to succeed appeared first on imeisource.
Samsung wants to keep Galaxy S26 pricing in check
According to a report from NewSis, Samsung spent close to KRW 7.8 trillion (~$5.57 billion) on chips in the first half of this year. That is 30% more than last year when it spent KRW 6.02 trillion (~$4.3 billion), and that is largely because it exclusively used Qualcomm's Snapdragon chips in the Galaxy S25 series. Last year, it used a mix of Exynos and Snapdragon chips in the Galaxy S24 series.
https://www.imeisource.com/wp-content/uploads/2024/10/Qualcomm-Snapdragon-8-Elite-4.jpg
Snapdragon chips are more expensive than similar Exynos chips, and the next-generation Snapdragon chip is reportedly even pricier. To address this, Samsung MX (Samsung's smartphone division) plans to use the Exynos 2600 chip in at least some Galaxy S26 series models. This move not only reduces the overall cost burden but also offers Samsung an opportunity to negotiate better prices when purchasing chips Snapdragon from Qualcomm.
This way, the company can make sure it isn't forced to increase the price of Galaxy S26 series phones compared to the Galaxy S25 series. However, the big question is, will Samsung actually use the Exynos 2600 in the Galaxy S26?
Won-joon Choi, the COO of Samsung MX, recently said, “The evaluation (of the Exynos 2600) is proceeding as planned. The evaluation process is not yet complete and is currently ongoing.” This implies that Samsung still hasn't finished testing the Exynos 2600 in prototype Galaxy S26 phones, as the launch is still at least five months away. The South Korean firm could make its decision in the next couple of months.
Samsung Foundry's further success depends on Exynos 2600
https://www.imeisource.com/wp-content/uploads/2022/06/Samsung-Foundry-3nm-Semiconductor-Chip-Wafer.jpg
Samsung Foundry's 3nm semiconductor chip wafer / Image Credits: Samsung
Samsung's semiconductor chip manufacturing business, Samsung Foundry, has been struggling in recent years. However, they recently secured a $16.5 billion contract with Tesla to fabricate 2nm ‘AI6' chips for the electric carmaker. The performance of the Exynos 2600 chip will determine how well-prepared Samsung is before it starts manufacturing Tesla's AI chips.
If the Exynos 2600 proves successful, it will significantly improve Samsung's smartphone business profitability and help secure more semiconductor chip orders from major chip firms like AMD, Nvidia, and Qualcomm. This is precisely why Samsung needs the Exynos chip to succeed.
The post Why Samsung needs its in-house Exynos 2600 chip to succeed appeared first on imeisource.