A couple of weeks ago, reports surfaced suggesting that Samsung was considering outsourcing the production of its Exynos SoC to TSMC. This came as part of Samsung’s response to ongoing production challenges at its foundry. Now, a recent update suggests (via @jukanlosreve) that this potential deal with TSMC might be closer to finalization.
Samsung Foundry faces uncertainty as Exynos production moves closer to TSMC
According to rumors, Samsung’s smartphone division is weighing this move seriously, as it looks for ways to incorporate Exynos processors into its flagship products. Its in-house foundry division is struggling with poor yields of its advanced 3nm process node. This caused production issues with the Exynos 2500, which was initially expected to power the Galaxy S25 series.
While Samsung is now exclusively using Qualcomm’s Snapdragon 8 Elite (made on TSMC’s 3nm process), it’d want to bring Exynos back into the mix in the future. With its foundry division seemingly failing to improve things anytime soon, the firm is tempted to switch to TSMC. The Taiwanese firm has a much higher 3nm yield rate and has already secured advanced chip manufacturing contracts with nearly every major industry player.
TSMC‘s advanced process nodes are also believed to offer better reliability, performance, and efficiency. A partnership with the Taiwanese firm could help Samsung address challenges with Exynos chips and improve its mobile processors. If finalized, Samsung would benefit from TSMC’s advanced semiconductor technology, trusted by Apple and Qualcomm.
However, this move raises concerns about Samsung’s foundry business, which is already under the pump. If the smartphone division indeed shifts to TSMC for future Exynos flagships, it will severely affect the foundry division’s reputation. TSMC is already miles ahead, capturing nearly two-thirds of the market. It will be interesting to see how a Samsung-TSMC partnership Samsung’s future devices and foundry business.
