Samsung Plans Key Change to Cut Galaxy A18 Production Costs

Samsung is reportedly gearing up to introduce its next-generation budget smartphone, the Galaxy A18, in the second half of this year. However, rising component prices, particularly memory chips, have put pressure on its production costs. To tackle this issue, the company appears to be making a key change to its display technology, though the move should not affect the user experience.

Samsung is leaning toward adopting the CoG method

According to a report from ZDNet Korea, Samsung is planning to make changes to the display driver IC (DDI) assembly method for the Galaxy A18. The company may opt for the Chip-on-Glass (CoG) method instead of the Chip-on-Film (CoF) approach applied to the predecessor Galaxy A17.

In the CoG method, the display driver chip directly attaches to the screen’s glass substrate. As a result, the manufacturers see this as a more cost-effective option. In comparison, CoF needs an extra film layer, which increases production, though it should open up some design advantages.

The decision to switch methods appears to be due to rising component costs in the semiconductor space. In particular, memory chips have become more expensive due to solid demand and supply pressure. As a result, the overall cost of making smartphones has increased greatly, leading companies to raise prices.

Last year, Samsung launched the Galaxy A17 with a price tag of $199. Hopefully, the Korean firm will be able to maintain a similar pricing for the Galaxy A18. The next-gen phone will likely come in both 4G and 5G variants, depending on the market. The former has already made its way into the GSMA database with the model number SM-A185F.

Meanwhile, the outlet also says that Wonik D2I is in talks with Samsung Display about the supply of display driver ICs for the Galaxy A18. If it pans out, it could pose a challenge for DB HiTek, the current supplier of display driver ICs for the Galaxy A17.