Samsung’s Uncertain Fate: The Exynos Dilemma

The Year of Turmoil for Samsung Foundry

2024 was a year of highs and lows for Samsung Foundry. Despite the company’s efforts to revolutionize its chip manufacturing processes, the need to abandon Exynos for the Galaxy S25 lineup marked a significant shift in their strategy.

In search of a solution, Samsung considering outsourcing Exynos production to Taiwan Semiconductor Manufacturing Company (TSMC). However, TSMC surprisingly rejected the proposal, leaving Samsung’s chips in a state of limbo.

The Rejected Deal: TSMC’s Decision

The exact reasons behind TSMC’s rejection remain unclear, but insider Jukansreve suggests that TSMC wants to protect its internal workings from a rival company. With this deal off the table, Samsung will have to focus on its own manufacturing capabilities. The recent stabilization of their 3 nm process is a positive step in this direction.

Galaxy S25: Snapdragon 8 Elite Chipset

For the time being, all three Galaxy S25 phones will utilize the Snapdragon 8 Elite chipset, a significant change from the usual Exynos setup. With plans for the Exynos 8 Gen 2, next year’s chipsets might be more expensive due to Qualcomm’s reportedly planned price hike.

The Rise of 3 nm Process

Samsung’s 3 nm process, which faced poor yield rates initially, is now finally stabilized. Although the latest chipset didn’t debut on the Galaxy S25 lineup, sources indicate that the Exynos 2500 will power the upcoming Z series phones.

The Future of Exynos

Samsung Foundry continues to work on 2 nm and 1.4 nm chips, with the Exynos deal with TSMC being a short-term solution until their own manufacturing processes are perfected. TSMC’s rejection won’t halt Samsung’s Exynos plans altogether.

The Potential of In-House Exynos

Like Apple silicon, Galaxy phones powered by Samsung’s in-house Exynos chips could outshine the competition if optimized properly. The Galaxy series, already considered some of the best phones in the world, won’t be affected by TSMC’s rejection.

Video: The Z series has seen underwhelming sales. | Video credit — Samsung