According to Ice Universe, Samsung’s Galaxy S25 series will exclusively feature the Snapdragon 8 Elite chip worldwide, marking a significant shift from the company’s initial plans. Originally, Samsung intended to incorporate its Exynos 2500 chip into the series. However, production challenges made this goal unattainable, prompting a strategic pivot.
Production Issues and Strategic Changes in Samsung’s Chip Strategy
Samsung’s ambition to compete with Qualcomm’s top-tier mobile hardware using the Exynos 2500 faced setbacks due to production issues.
The 3nm GAA wafer yield rates at Samsung Foundry were reported to be between 10% and 30%, which hindered mass production. As a result, Samsung opted to equip all Galaxy S25 models with the Snapdragon 8 Elite chip.
In response to these challenges, Samsung explored alternative strategies, including the potential use of the Dimensity 9400 chip for certain models. Traditionally, Samsung employs a dual-chip strategy for its non-Ultra Galaxy S models, while the Ultra models utilize Qualcomm’s latest SoC globally.
The decision to standardize the Snapdragon 8 Elite chip could significantly impact production costs, given its higher price compared to Samsung’s in-house options.
Cost and Future Outlook for Samsung’s Chip Strategy
The cost of manufacturing the Snapdragon 8 Elite is considerably higher than that of Google’s Tensor G4 chip, which is priced around $80. In contrast, the Snapdragon 8 Elite retails for approximately $200. This cost disparity may influence Samsung’s pricing strategy for the Galaxy S25 series, potentially leading to higher consumer prices or reduced profit margins.
Looking ahead, there are indications that the Galaxy S26 series might also rely on Qualcomm hardware globally.
