Samsung is reportedly adopting a new strategy for its Exynos processors, prioritizing production yield over outright performance. This shift comes as the company faces ongoing challenges with its advanced chip fabrication processes. Despite starting mass production in 2023, Samsung has yet to achieve satisfactory yields for its 3nm process. Its 2nm yield rate is even lower, raising concerns about mass production.
Samsung considers lowering performance to improve Exynos 2500 and 2600 yields
The Exynos 2500 is Samsung’s first 3nm smartphone process, while the Exynos 2600 is expected to be its first 2nm chip. The company originally aimed to use the former in the Galaxy S25 series but poor yields delayed its mass production. The new flagships shipped with a Qualcomm processor globally. Now, Samsung plans to use the Exynos 2500 in its upcoming Flip foldables.
The Exynos 2600, meanwhile, is targeted for the Galaxy S26 series coming early next year. However, concerns are mounting over its mass production, as Samsung’s 2nm process remains problematic. Based on various reports, yields are likely hovering in the 10-30% range. If the situation does not improve significantly in the coming months, Samsung could be forced to abandon the Exynos 2600 as well.
“Pushing production under these conditions would result in a high rate of defects, potentially leading to an operating profit margin of -50% and inevitable massive losses,” an industry source said. However, Samsung allegedly doesn’t want to completely shelve the Exynos 2500 and Exynos 2600. If yields don’t improve, it may even lower performance to ensure the chips enter mass production.
If Samsung fails to resolve its 2nm yield issues in time for the Exynos 2600‘s expected rollout next year, the company could find itself once again relying solely on Qualcomm for its Galaxy S26 flagships. This would be a setback for Samsung’s long-term ambition of reducing dependence on third-party chip suppliers. It aims to reestablish Exynos as a competitive alternative to Snapdragon, but it’s clearly easier said than done.
