Samsung’s next-generation foldable phone, the Galaxy Z Flip7 that expected to launch in the second half of 2025 could use the company’s own Exynos 2500 application processor (AP), says The Elect. This marks a significant shift, as it’s the first Galaxy foldable device to utilize an Exynos chip, breaking the previous reliance on Qualcomm’s APs.
Exynos 2500 Finds a Home in Foldables
This news follows much speculation surrounding the Exynos 2500 and its intended application. Rumors had suggested it wouldn’t appear in the Galaxy S series, a prediction that has now been purportedly confirmed.
A high-ranking Samsung official confirmed the chip’s inclusion in devices like the upcoming Galaxy Z Flip 7, stating that mass production is slated for next year, says the report.
Strategic Implications and Market Dynamics
This strategic move can be interpreted in several ways. Firstly, it signifies Exynos’s entry into the foldable phone market, a segment previously dominated by Qualcomm. Secondly, it raises questions about the maturity of Samsung Foundry’s 3nm 2nd generation process, which is used to manufacture the Exynos 2500. While some speculate this deployment indicates stabilization of the process, further observation is warranted.
Limited Initial Volume and Flagship Focus
Despite its inclusion in a premium model, the Exynos 2500’s initial volume is expected to be relatively low. While Samsung anticipates producing 229.4 million smartphones next year, the flagship Z Flip7 is projected to account for only 3 million units (1%), with the budget Z Flip FE contributing a mere 900,000 units (0.4%). This contrasts sharply with the Galaxy S series, which ships tens of millions of units annually.
A Crucial Test for Exynos and Samsung Foundry
The decision to debut the Exynos 2500 in a lower-volume device, rather than the high-volume S series, has generated discussion. While some express disappointment, given the potential for greater chip sales with S series integration, others view it as a crucial step for the Exynos chip business, which has faced significant challenges.
The Samsung official conveyed a confident tone, hinting at “a lot of good things” to come next year, according to the report.
Impact on Samsung Foundry’s 3nm Process and Market Share
The Exynos 2500’s deployment also has implications for Samsung Foundry. The successful mass production of the chip could be seen as evidence of improved 3nm process yields, addressing previous difficulties with GAA mass production.
However, definitive conclusions will require observing the actual product performance. Samsung Foundry has been facing increasing competition, with its market share recently dropping below 10%, according to TrendForce, while TSMC commands a dominant 64.9% share.
Internal Collaboration and Future Outlook
Internal discussions within Samsung have reportedly addressed previous disagreements between the System LSI (design) and Foundry (manufacturing) divisions regarding yield issues. The current focus is on collaboration and synergy to ensure business success.
Samsung Foundry’s 4nm process is currently its most competitive, boasting high yields. Achieving similar success with the more advanced 3nm and 2nm processes is anticipated to be challenging. The launch of the Exynos 2500 in the next-generation foldable phone marks a crucial test for both the Exynos chip and Samsung Foundry’s advanced process technology.