Samsung’s semiconductor division has struggled in the 3nm era. Its first 3nm smartphone processor, the Exynos 2500, faced significant production delays due to low yields. Despite this, the company remains optimistic about a turnaround, with the Exynos 2500 playing a key role in its recovery plans.
Samsung expects to bounce back with the Exynos 2500 next year
The Korean technology giant is the world’s second-largest foundry after TSMC. However, its real competition is with those behind it rather than the Taiwanese firm. While Samsung captured a 9.3% share in the foundry market in Q3 2024, TSMC captured nearly 66%. China’s SMIC followed Samsung closely with a 6% market share.
In terms of smartphone chip sales, the Korean firm allegedly fared worse between July and September this year. Its Exynos processors accounted for only 5% of the overall market, which is largely dominated by Qualcomm and MediaTek — these two are fabless companies, so they do not compete with Samsung in the foundry industry.
Samsung’s declining chip sales reflect the challenges in the foundry division. Poor yields mean the company is relying on Qualcomm and MediaTek processors for most of its mobile products. The Galaxy Z Fold 6, Flip 6, and Tab S10 series all use third-party processors rather than in-house Exynos solutions. Samsung even uses external chips in many mid-range devices.
The situation won’t improve anytime soon as the Galaxy S25 series is all set to run Qualcomm’s Snapdragon 8 Elite globally. However, in the second half of 2025, Samsung plans to use Exynos chips in its Flip foldables for the first time. The Galaxy Z Flip 7 is likely to be powered by the delayed Exynos 2500, which was originally meant for the Galaxy S25.
Additionally, Samsung might use the Exynos 2400, 2400e, or a variant of the 2500 in the Galaxy Z Flip FE. It is a new model in the company’s foldable lineup. If it succeeds in these plans, the market share of Exynos processors could grow in Q3 2025. But in the long run, Samsung must improve its foundry tech. It remains to be seen if it can steal some clients from TSMC with an improved 2nm process anytime soon.
