Samsung to chop chip bills with elevated use of Exynos

Samsung plans to extend using Exynos processors in its Galaxy smartphones and tablets in 2024. The corporate is contemplating this transfer to maintain prices down as chip costs enhance globally. We would see MediaTek and Qualcomm chips in fewer Galaxy gadgets this 12 months.

Samsung plans to place its Exynos processors in additional Galaxy gadgets

Regardless of manufacturing Exynos processors in-house, Samsung makes use of chips from MediaTek and Qualcomm in quite a lot of Galaxy gadgets. Its foldables have at all times used Qualcomm’s Snapdragon processors, whereas S-series flagships have traditionally include Exynos and Snapdragon chips. Finances and mid-range fashions additionally use Snapdragon and MediaTek’s Dimensity chips together with Exynos.

Final 12 months, Samsung completely used Snapdragon within the Galaxy S23 sequence. This led to its AP (Software Processor) bills growing almost 50% from 7.63 trillion received (approx. $5.7 billion) in 2021 to 11.38 trillion received (approx. $8.5 billion) in 2022. Since a considerable chunk of chip purchases for the Galaxy S23 sequence have been possible made in 2022, the bills elevated that 12 months.

Samsung returned to Exynos for the Galaxy S24 series. Whereas the Extremely mannequin nonetheless makes use of Snapdragon globally, the opposite two fashions ship with an Exynos chip in most markets. This helped the corporate hold the chip bills for 2023 nearly flat at 11.73 trillion received (approx. $8.8 billion), a 3% enhance from 2022. Nevertheless, it’s nonetheless quite a bit larger than what Samsung spent in 2021.

Whereas a worldwide enhance in chip costs could also be the principle cause, the Korean agency utilizing extra MediaTek and Qualcomm processors has additionally added to the associated fee. A current report revealed that only 13 million devices shipped globally in This autumn 2023 featured an Exynos chip, down 48% from the identical interval in 2022. Samsung’s income from chip gross sales additionally dropped 44% throughout this era.

Since Exynos chips are primarily utilized in Galaxy gadgets, this reveals that Samsung is shifting away from its in-house processors. It is a lack of enterprise alternative for the corporate’s semiconductor division, whereas the smartphone division can be incurring further prices for getting chips from exterior manufacturers. Growing using Exynos processors in its Galaxy gadgets is a win-win for each divisions.

This strategic shift is already underway

Samsung has already begun shifting from MediaTek and Qualcomm chips to Exynos. It recently launched the Galaxy A35 with the Exynos 1380. Final 12 months’s Galaxy A34 featured MediaTek’s Dimensity 1080. The Galaxy A25 additionally switched from MediaTek to Exynos. We may even see an identical development throughout different Galaxy lineups within the coming months. The brand new foldables are unlikely to make use of Exynos chips, although. The Galaxy Z Fold 6 and Galaxy Z Flip 6 ought to arrive in July.