Samsung’s System LSI division is reportedly considering forming alliances with TSMC to secure the future of its Exynos chips. This move comes amid challenges with Samsung’s in-house chip manufacturing processes, particularly the underwhelming yields of its 3nm Gate-All-Around (GAA) process.
The Exynos 2500, originally slated to be used in the Galaxy S25, has faced delays due to the low yields from Samsung’s 3nm process, which has left the company’s flagship chips struggling to meet the high demands of the market. The failure to resolve these issues has led many to believe that Samsung’s Exynos lineup could be in jeopardy unless it seeks external support. TSMC, the industry leader in advanced chip manufacturing, is the most likely partner to help Samsung recover its competitiveness.
As reported by The Bell, Samsung’s LSI division is exploring the option of forming a strategic alliance with TSMC. TSMC, which has long been the primary foundry for chips from major players like Apple and Qualcomm, has reportedly reached its production limits. It raises questions about how feasible a collaboration between Samsung and TSMC might be. Despite the challenges, Samsung is looking for ways to stabilize its chip production by potentially diversifying its foundry partnerships.
Samsung might only manufacture the flagship Exynos chips from TSMC
We previously noted that sourcing production to TSMC could make the end product more expensive. Now we have a clearer idea of how Samsung will manage the cost. An anonymous semiconductor industry insider highlighted the situation: “Even if the System LSI division signs a contract with TSMC, Exynos will not immediately leave the hands of the Foundry Division. Having multiple foundries is advantageous in terms of both price and supply stability.”
Samsung Foundry’s 4nm and older process nodes are manageable, allowing it to continue manufacturing mid-range and entry-level chips on its own. Meanwhile, the flagship Exynos chips could finally match Qualcomm’s performance and efficiency, a goal Samsung has been striving for in recent years. This dual-sourcing strategy could change how people perceive Exynos, while Samsung keeps manufacturing costs low for the rest of its Galaxy devices.
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