Samsung is facing technical difficulties that could lead to major changes in its strategy for the Galaxy S25 range, planned for launch next year in January.
Initially, the South Korean company intended to equip the base and Plus models with its own Exynos processors, while the Ultra variant was to receive Snapdragon chips.
However, according to recent reports, this plan could undergo major changes.
Cause: Chip manufacturing problems
The main problem identified is the low yield in the production of Exynos 2500 chips.
In the semiconductor industry, the term “yield” refers to the percentage of functional chips obtained from a circular silicon wafer.
Although a 100% yield is impossible due to the nature of the manufacturing process, the current situation at Samsung is worrying.
Broader implications
The situation is part of a wider crisis facing Samsung’s semiconductor division.
First of all, we are talking about delays in the development of the 2-nanometer production process and consequent losses in the foundry division (the one that deals with the production of chips).
On the other hand, the crisis also means the loss of important customers such as Apple and Nvidia, which chose the competitor TSMC.
Possible solutions
The company is evaluating several options to manage the situation.
Some of them: the relocation of some employees from the foundry division to the memory division and the full switch to Snapdragon processors for the Galaxy S25 series.
Financial perspectives
Analysts expect Samsung’s non-memory division, which also includes its chip business, to post an operating loss of about $385 million in the third quarter.
The company will present official results in mid-October and hold an online Foundry Forum on October 24, an unusual decision that reflects the difficult situation.
What will be the impact on users
This situation could mean, among other things, possible price adjustments due to higher production costs, the exclusive use of Snapdragon processors in all models and possible delays in the launch of the Galaxy S25 series.
The current situation represents a significant challenge for Samsung, which must quickly find solutions to maintain its position in the global semiconductor market and ensure the successful launch of the next generation of flagship smartphones in 2025.
Source: Businesskorea
Source: www.go4it.ro
