The application of 2-nanometer technology in 'smartphone brains' is likely to determine the performance of the system semiconductor business depending on its inclusion in next year's Galaxy S26.
Samsung Electronics has commenced mass production of its proprietary mobile application processor (AP), the 'Exynos 2600'. The inclusion of this processor in the upcoming Galaxy S26 series, slated for release next year, is expected to be a crucial factor influencing the performance of Samsung's system semiconductor business.
According to the semiconductor industry on the 9th, Samsung Electronics has recently initiated the mass production of the Exynos 2600. The Exynos is an in-house developed chip designed by the System LSI Division and manufactured by the Foundry Division, with the latest model developed based on a 2nm (nanometer; 1nm is one-billionth of a meter) process. This move is interpreted as a preemptive measure to supply the processor in time for the launch of the Galaxy S26 series next year.
The mobile AP serves as the 'brain' of a smartphone, and its performance and yield must meet certain standards. If these conditions are not met, the Exynos 2600 may not be included in the Galaxy S26 series. In fact, the previous mobile AP product, the Exynos 2500, was not included in the Galaxy S25 series released earlier this year due to controversies over yield and performance. As a result, it is reported that Samsung Electronics' System LSI Division and Foundry Division have incurred quarterly losses of around KRW 2 trillion since the fourth quarter of last year (October to December).
The success or failure of the Exynos 2600 is also expected to impact the sales of the Galaxy S26 series. If the Exynos is included, the price competitiveness of the Galaxy S26 series could be enhanced. The mobile AP procurement cost for Samsung Electronics' Device Experience (DX) Division, which oversees the smartphone business, was KRW 7.7899 trillion in the first half of this year (January to June), a 29.2% increase compared to the same period last year (KRW 6.0275 trillion). This increase is attributed to the full adoption of Qualcomm's mobile AP, the 'Snapdragon 8 Elite', in the Galaxy S25 series.
An industry insider stated, "To include the Exynos 2600 in the Galaxy S26 series, a mass production system must be established from now," adding, "The success of this new mobile AP is crucial not only for the system semiconductor but also for Samsung Electronics as a whole."
Lee Dong-hoon
AI-translated with ChatGPT. Provided as is; original Korean text prevails.
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