After facing a major setback with its Exynos 2500 “dream chip”, Samsung’s smartphone division might do the unthinkable: switch its production from its sister firm Samsung Foundry to arch-rival TSMC. A rumor circulating on X suggests this surprising possibility could happen soon. The Korean firm reportedly weighing this unexpected strategy to return to making competitive Exynos chips at the earliest.
Samsung eyes TSMC for the next Exynos after foundry shortfalls
TSMC is the world’s largest semiconductor foundry, with Samsung Foundry distantly following it. The former’s chip fabrication technology is also widely considered superior, attracting big chip designers who consistently favor its services. The Taiwanese firm has secured manufacturing contracts for advanced chips from nearly every major industry player, while Samsung has struggled to land any notable deals.
While TSMC launched its first 3nm smartphone processor last year — Apple’s A17 Pro for the iPhone 15 Pro lineup — Samsung has yet to make one. Its second-gen 3nm yield rate is still too low for mass production. The Korean conglomerate was expected to produce the Exynos 2500 for the upcoming Galaxy S25 series. However, low yields have allegedly forced it to cancel the new flagship processor.
Reports suggest the Exynos 2500 is a joint project between Samsung’s smartphone and semiconductor divisions. The so-called “dream chip” was supposed to bring the company back on track after a series of underperforming Exynos processors. However, Samsung Foundry’s shortcomings have spoiled the plans, leaving the smartphone division dissatisfied and reportedly considering a strategic shift.
If Samsung’s smartphone division moves to TSMC for the production of its advanced processors, it would mean a significant loss of business for Samsung Foundry. However, the smartphone unit needs to prioritize its own interests to avoid losing its technological edge in a competitive market. Time will tell whether this shift happens anytime soon or if Samsung Foundry will bounce back. We will keep you posted.
