Samsung is reportedly choosing to sacrifice the upcoming Galaxy Z Flip 7’s performance in favor of more cost savings, as it has chosen the Exynos 2500 for the upcoming clamshell foldable. The SoC’s mass production was previously said to have kicked off in February earlier this year, but due to low yields, the silicon was said to be available in smaller quantities. Now, a rumor claims that the Korean giant’s decision to use its own chipset was not a favorable one, but it likely ventured on this path to reduce its component costs by omitting the Snapdragon 8 Elite from the specifications list.
Samsung is estimated to have an initial supply of 200,000 Galaxy Z Flip 7 units; production could increase depending on Exynos 2500 yields, which are currently between 20 and 40 percent
The 3nm GAA technology has been a harrowing tale for Samsung, and one that the company likely wants to transition from as quickly as possible because of the incessant problems it has encountered with the manufacturing process. It appears that the Exynos 2500 might be the only recipient of this next-generation node, with details from Chosun that were spotted by tipster @Jukanlosreve mentioning that Samsung has decided to use this SoC in the upcoming Galaxy Z Flip 7, which is scheduled to launch in July during the firm’s ‘Unpacked’ event.
The foldable smartphone was previously rumored to have passed all internal tests with the Snapdragon 8 Elite, but an industry insider who spoke on the condition of anonymity said that the decision to use the Exynos 2500 was primarily due to the pricing differences between the two chipsets. Even then, the outcome is not ideal, because estimates claim that the yields of this SoC are in the 20-40 percent range. The report states that Samsung typically commences mass production when yields are at 60 percent, as it minimizes the costs arising due to defective chips.
On this occasion, Samsung will likely be paying more per wafer, but the Exynos 2500 could still end up being cheaper than the Snapdragon 8 Elite, which is why the company prefers to use it in the Galaxy Z Flip 7. An initial quantity of 200,000 units is said to be produced by June this year, and depending on the yields and consumer demand, Samsung could increase that figure. The advantage of pursuing development on its own technology is that the Korean foundry will obtain the necessary experience required to improve its 2nm GAA yields, which are said to be at 30 percent.
During its Q1 2025 earnings, Samsung mentioned that it plans to start full-scale 2nm wafer production in the second half of 2025 and aims to secure orders for this manufacturing process. Assuming the yields progress well, TSMC could gain some competition later this year.
News Source: Chosun
About the author: Omar Sohail is a reporter and analyst for Wccftech's mobile section, specializing in the technology and business of the mobile industry. His expertise lies in the intricate hardware supply chain, covering developments in semiconductor manufacturing, chip lithography, and camera sensor technology.
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