[Chip Talk] Samsung with no retreat on 'AP Independence'... Betting on Exynos 2600

S25 Popularity Soars, but AP Self-Reliance Remains a Challenge
Exynos 2600 in Preparation for S26
Reliance on Qualcomm Due to Performance Issues Like Overheating
Can Samsung's Own Exynos AP Revive the Galaxy Series?

Samsung Electronics is preparing to equip its new Galaxy S26, scheduled for release early next year, with its own AP, the 'Exynos 2600.' Given the multiple setbacks it has faced, a desperate atmosphere of 'this is the last chance' is sensed within Samsung Electronics.

Recently, the popularity of the Galaxy S25 has soared, surpassing 1 million units sold in the shortest period ever in Korea, but Samsung Electronics cannot simply celebrate. Initially, the company planned to equip the device with its own mobile application processor (AP), the 'Exynos 2500,' but due to unresolved performance issues, it has had to rely on Qualcomm. Samsung Electronics now faces the challenge of whether it can achieve AP self-reliance in upcoming models.

Samsung Exynos 2500, provided by Samsung Electronics

Mobile APs are system semiconductors responsible for core functions such as computation and multimedia in the latest mobile devices like smartphones and tablet PCs, often called the 'brain of the smartphone.' The chipset includes the central processing unit (CPU), graphics processing unit (GPU), cache memory, and GPS module, with performance and power efficiency directly linked to product competitiveness.

The current global AP market size reaches approximately 50 trillion KRW. According to market research firm Counterpoint Research, MediaTek holds the largest AP market share at 36%. Qualcomm (26%), Apple (18%), and UNISOC (11%) follow, with Samsung Electronics at only 5%.

Qualcomm leads the market by supplying APs through its 'Snapdragon' series to Samsung Electronics, Xiaomi, Oppo, Vivo, and others. Apple exclusively supplies its iPhones with its self-designed 'A-series' chips. MediaTek is strengthening its position in the mid-to-low-end smartphone market, increasing its market share. In contrast, Samsung Electronics, which previously supplied core chipsets for the Galaxy S series, now depends more heavily on Qualcomm than before.

Did Samsung Voluntarily Halt AP Self-Reliance?

Samsung Electronics officially launched its own AP brand, 'Exynos,' in 2011. Since then, Samsung has used a dual strategy by equipping its devices with its own Exynos chips in regions like Korea and Europe, while using Qualcomm's Snapdragon chips in the US, China, and other markets.

However, the 'Exynos 2200' used in the Galaxy S22 faced persistent issues such as overheating and reduced power efficiency. As a result, Samsung decided to suspend the use of Exynos in the Galaxy S series for two years. The Galaxy S23 series released in 2023 excluded Exynos and used Qualcomm's Snapdragon chips instead.

In the following year, 2024, the Galaxy S24 series reintroduced the Exynos 2400 in some models (S24 and S24+) after two years, but the Galaxy S25 released this year again used only Qualcomm's Snapdragon chips. It is reported that Samsung initially planned to equip some Galaxy S25 units with the Exynos 2500 but abandoned the plan due to performance and yield issues.

Z Flip7? S26? Is Exynos Making a Comeback?

Recently, Samsung declared the 'revival of Exynos' and is striving to increase the proportion of its own APs in Galaxy models. This is because the profit from component costs and royalties during AP production is significant. Qualcomm also leverages this position to raise prices by about 15-20% annually. Samsung Electronics' quarterly reports show that mobile AP purchase costs rose from 7.6295 trillion KRW in 2021 to 11.379 trillion KRW in 2022, and 11.732 trillion KRW last year.

Since there was a plan to equip the S25 with Exynos, there was speculation about the possibility of using Exynos in the Z Flip7 and Z Fold7 series, scheduled for release in July this year. However, given the performance and yield issues, the industry believes the likelihood of Exynos being used in the soon-to-be-released Z Flip7 and Z Fold7 is low.

Inside Samsung Electronics, it is reported that a full-scale effort, including process improvements, has recently been launched to equip Exynos. The Exynos 2500 had a yield rate below 50% earlier this year, but with recent improvements in yield, full-scale mass production preparations have begun. The Exynos 2600 started prototype mass production around May this year, and the final decision on its inclusion in the Galaxy S26 at the end of this year is expected. Samsung Electronics' semiconductor (SD) division's foundry business unit recently formed a dedicated team for the Exynos 2600 to actively respond.

An industry insider explained, "Although it failed to be equipped in the Galaxy S25, preparations are underway targeting the S26," adding, "It seems they are also challenging to include it in the Z Flip7."