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Samsung Reportedly Facing Low Yields From Exynos 2500 Production

Corroborating past rumours, it is suggested that the tech giant may instead use the Snapdragon 8 Gen 4 to power its upcoming Galaxy S25 smartphones.

by Heirul Kamel
October 8, 2024
Samsung Exynos chip chips chipset processor Galaxy AMD

Image: Samsung

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A recent report by Business Korea suggests that the base and Plus variants of Samsung’s next flagship smartphone series, the Galaxy S25, might not feature the company’s first-party chipset when launched next year. The publication claims the South Korean tech giant is currently facing production challenges with its 3nm Exynos 2500, which has produced low yields.

The report adds that yield from Samsung’s chip manufacturing process has been too low to ensure sufficient production for the Galaxy S25 series’ launch, though the exact figures are not available. In the semiconductor industry, low yields occur because not all chips meet quality standards, and there is always some waste when chips are cut from wafers.

Samsung-Exynos2500
Image: Samsung, via NotebookCheck

With insufficient Exynos 2500 chips, it is said that Samsung may resort to equipping all Galaxy S25 models with Qualcomm’s soon-to-be-announced flagship chipset, tentatively known as the Snapdragon 8 Gen 4. Should this be the case, it would mark another setback for the company’s semiconductor business. Business Korea notes that the tech giant has already lost significant clients like NVIDIA and Apple, both of whom have turned to rival TSMC for their AI-enabled chips, further highlighting the challenges Samsung’s foundry faces in the competitive market.

This shift could also impact Samsung’s broader ambitions in the chip industry, where it has been striving to catch up with TSMC. The report adds that its potential failure to supply its flagship devices with first-party chips not only underscores ongoing production issues, but also reflects the difficulties in maintaining client confidence amid tough competition and technological challenges.

Samsung-Galaxy-S25-Ultra-renders-3
Image: Android Headlines

On a related note, separate reports from last month have also claimed that Samsung may opt for the Snapdragon 8 Gen 4 for its new flagship smartphones, and will only utilise its own Exynos 2500 for next year’s foldables instead due to the latter’s low yield count. Of course, these as well as Business Korea’s claims are unverified, so only time will tell if the information provided is actually accurate.

(Source: Business Korea)

Filed Under exynosExynos 2500Galaxy S25productionSamsung
Updated 11:29 am, Tue, 8 October 24
https://lowy.at/11421
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