Erencan YılmazSamsung is staring at a make-or-break decision that will determine the future of its smartphone as well as semiconductor business. The company’s internal chip design unit has created the Exynos 2600, its inaugural 2nm chip, but the phone unit is still considering adopting it for the next-generation Galaxy S26 series. The result of the decision has enormous financial and strategic implications.
A Financial balancing act
One of the main motivations for Samsung to utilize the Exynos 2600 is to manage costs. According to a recent report by NewSis, Samsung has spent close to $5.6 billion on chips in the first half of this year, a 30% hike from last year. This is mostly because of the sole usage of Qualcomm’s high-priced Snapdragon chips in the Galaxy S25 series.
By utilizing its own Exynos chip, Samsung MX (the mobile business) can not only cut down on its total chip spending but also be in a better position to negotiate with Qualcomm for better prices for the Snapdragon chips that it does end up purchasing. This tactical step could prove instrumental in making the price of the Galaxy S26 series as competitive as its predecessor.
Won-joon Choi, Samsung MX’s COO, said the testing of the Exynos 2600 is “going as scheduled” but is still “not yet finalized.” This points to a thorough and extensive testing process, designed to guarantee the chip’s performance is up to the high level demanded of a flagship model.
Critical point for Samsung foundry
Outside of the smartphone world, the destiny of the Exynos 2600 also marks a very important inflection point for Samsung Foundry. The company’s semiconductor manufacturing business has struggled in recent years, mainly due to lower yield rates in its newer process nodes compared to its rival, TSMC. Made on Samsung’s latest 2nm process, the Exynos 2600 is a significant benchmark. Its success will demonstrate the foundry’s readiness to mass-produce 2nm chips at high yields.
A successful Exynos 2600 would be a huge victory for Samsung Foundry, which could see it win highly profitable contracts from large companies. This now includes a recent $16.5 billion agreement with Tesla to produce 2nm “AI6” chips for the electric vehicle maker. The Exynos 2600 is an important proof of Samsung’s manufacturing prowess before it starts producing for Tesla. In a way, the success of the Exynos chip will not only enhance the profitability of Samsung’s smartphone business but also seal the future competitiveness of its whole semiconductor business.
Source: NewSis
