Samsung’s upcoming foldable phone, the Galaxy Z Flip7, expected to launch in the latter half of 2025, might debut with the company’s in-house Exynos 2500 application processor (AP), according to a report by The Elec. This marks a significant milestone as it would be the first Galaxy foldable to feature an Exynos chipset, moving away from the exclusive use of Qualcomm processors in the series.
Exynos 2500 Enters the Foldable Market -
Speculation surrounding the Exynos 2500's role had suggested it would not appear in the Galaxy S series, a claim now reportedly confirmed. A senior Samsung official cited in the report revealed plans to use the chip in devices like the Galaxy Z Flip7, with mass production set for 2024.
Strategic Implications -
This shift represents a strategic move for Samsung’s Exynos division, marking its debut in the foldable market—a domain previously dominated by Qualcomm. It also highlights Samsung Foundry's efforts to mature its 3nm second-generation process, used for manufacturing the Exynos 2500.
While some interpret this decision as a sign of confidence in the improved process, others suggest caution, noting the need to observe real-world performance before drawing conclusions.
Production and Market Dynamics -
Despite its inclusion in a premium model, the Exynos 2500’s initial production volume will be relatively small. Samsung plans to produce 229.4 million smartphones in 2025, but the Galaxy Z Flip7 is projected to account for just 3 million units (1%), with the budget-friendly Z Flip FE contributing 900,000 units (0.4%). This is a stark contrast to the Galaxy S series, which ships tens of millions of units annually.
Testing Grounds for Exynos and Samsung Foundry -
Introducing the Exynos 2500 in a lower-volume device like the Z Flip7, rather than the high-volume Galaxy S series, has sparked debate. Critics argue that integrating the chipset into the S series could yield higher sales, while proponents view this as a critical testing phase for Samsung’s Exynos and Foundry divisions.
A Samsung representative expressed optimism about the developments, hinting at “a lot of good things” in the pipeline for next year.
Impact on Samsung Foundry and Market Competition -
The deployment of the Exynos 2500 could serve as a benchmark for the success of Samsung Foundry’s 3nm process, addressing previous challenges in yield and production. However, the true measure of success will depend on the chipset’s performance in the Galaxy Z Flip7 and its reception in the market.
Samsung Foundry continues to face fierce competition, with its market share recently falling below 10% (as per TrendForce), compared to TSMC’s commanding 64.9% share. Internal collaboration between Samsung’s System LSI (design) and Foundry (manufacturing) teams is reportedly being emphasized to improve synergy and resolve past yield-related disagreements.
Future Outlook -
Currently, Samsung Foundry’s 4nm process boasts high yields, but achieving similar success with its advanced 3nm and upcoming 2nm processes remains challenging. The launch of the Exynos 2500 in the Galaxy Z Flip7 will be a pivotal moment for both Samsung’s chipset business and its advanced semiconductor technology.
