Samsung is reportedly facing significant production challenges with its Exynos 2500 chips, potentially leading to major changes in its plans for the upcoming Galaxy S25 series. Initially, the company aimed to use its in-house Exynos processors for the base and Plus models, reserving Qualcomm’s Snapdragon chips for the premium Ultra version. However, recent reports indicate that all Galaxy S25 models might end up utilizing Snapdragon processors due to low yields in the production of the Exynos 2500 chips.
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According to a report from Business Korea, Samsung is encountering difficulties with its 3nm chip manufacturing process, resulting in low production yields. In the semiconductor industry, “yield” refers to the percentage of chips that function correctly and meet quality standards. Not all chips pass these quality tests, leading to some being discarded as waste. This issue is particularly pronounced with advanced manufacturing techniques like the 3nm process, where precision is essential, and even minor defects can render chips unusable. Although the report did not provide specific figures, low yields pose a significant challenge for Samsung, which relies on high-volume production to meet market demand. If Samsung cannot produce sufficient Exynos 2500 chips in time for the Galaxy S25’s scheduled January 2025 launch, it may be compelled to use Qualcomm’s Snapdragon 8 Gen 4, rumored to be marketed as the Snapdragon 8 Elite, across all models.
This potential shift could be detrimental to Samsung’s semiconductor division, which has been striving to strengthen its position in the global chip market. The company has already lost key orders from major clients like Nvidia and Apple, both of which have chosen to partner with TSMC, a leading Taiwanese semiconductor manufacturer, for their AI-enabled chips, citing TSMC’s superior yields and manufacturing capabilities.
