Samsung seems to be taking a strategic turn with its forthcoming Galaxy Z Flip 7, prioritizing cost savings over peak performance by potentially equipping it with the Exynos 2500 chipset. Initial plans to mass-produce this chipset reportedly began in February, but challenges with low production yields have limited its availability. Rumors suggest that the decision to use Samsung’s own chip instead of the anticipated Snapdragon 8 Elite is primarily a cost-cutting measure.
Reports estimate an initial run of 200,000 Galaxy Z Flip 7 units, with the potential for increased production based on yield improvements for the Exynos 2500, which are currently between 20 and 40 percent. Samsung’s journey with 3nm GAA technology has been fraught with difficulties, yet the Exynos 2500 is expected to be the sole beneficiary of this advanced node. This ambitious foldable device is slated for a grand reveal at Samsung’s ‘Unpacked’ event in July.
Despite previous tests with the Snapdragon 8 Elite showing promising results, an anonymous insider indicates that the cost difference drove the decision in favor of the Exynos 2500. This move, while financially motivated, presents challenges due to lower production yields. Samsung generally prefers to kick off mass production when yields hit 60 percent to mitigate costs associated with defects.
Even with these hurdles, opting for the Exynos 2500 might ultimately be more economical for Samsung compared to the Snapdragon 8 Elite, justifying its inclusion in the Galaxy Z Flip 7. The initial production target of 200,000 units could rise if demand and yields show favorable trends. By investing in its own technology, Samsung aims to refine its expertise, potentially boosting the yields of its future 2nm GAA processes, which are currently at about 30 percent.
Looking ahead, Samsung disclosed in its Q1 2025 earnings report the intention to commence full-scale 2nm wafer production in the latter half of 2025. This move aims to compete with industry giants like TSMC, assuming yield rates continue to improve.
