Samsung Electronics' foundry division is advancing its semiconductor capabilities through the mass production of the Exynos 2600 (tentative name), marking a strategic push for self-sufficiency in mobile application processors (APs). While industry watchers have speculated about potential investment reductions, the company maintains its commitment to AP development, with plans to secure Qualcomm and Nvidia as potential clients for its 2nm and 3nm processes.
Yield challenges and strategic shifts
Industry reports from South Korea indicate that low yield rates in Samsung's foundry operations have impeded recent AP advancements. However, the introduction of the 2nm process could mark a turning point. The company plans to integrate the Exynos 2600 into its Galaxy S26 smartphones, departing from its previous strategy of using both Exynos and Qualcomm chips based on market requirements.
Recovery from 3nm setbacks
Production difficulties with the company's 3nm Gate-All-Around (GAA) process, particularly yield rates significantly below initial targets, forced Samsung to exclude the Exynos 2500 from the Galaxy S25 series. While the 2500 may still appear in upcoming foldable devices, including the Galaxy Z Flip 7 and Z Fold 7, the company's primary focus has shifted to the Exynos 2600 development.
Client diversification efforts
Despite a slowdown in foundry division recruitment, Samsung continues its pursuit of orders from major technology firms. The company has prioritized System LSI, Qualcomm, and Nvidia as key potential clients. However, thus far, only the Japanese AI startup Preferred Networks (PFN) has been confirmed as a customer for the 2nm process.
