In a surprising turn of events, TSMC has reportedly rejected Samsung’s proposal to manufacture its Exynos mobile processors. This comes at a time when the Korean behemoth has been looking for production partners for its flagship Exynos chips. Its in-house foundry is struggling with poor yields and other technological issues.
TSMC will not manufacture Samsung’s Exynos chips
TSMC, the largest semiconductor foundry in the world, has long been the go-to manufacturer for many of the top names in the industry, including Apple, Qualcomm, and MediaTek. Samsung, which distantly follows TSMC in the foundry market, relies on its own semiconductor division to produce its Exynos chips. However, recent technological challenges within its in-house foundry have led it to explore the option of working with TSMC.
The plan was to use TSMC’s superior foundry processors to produce flagship Exynos processors. This came after Samsung Foundry failed to start mass production of the 3nm Exynos 2500 in time for the Galaxy S25 series. The new flagship will now use Qualcomm’s Snapdragon 8 Elite processor globally — also a 3nm chip manufactured by TSMC.
TSMC rejecting the proposal comes as a surprise to many. However, given the highly competitive and strategic nature of the semiconductor industry, the Taiwanese firm likely didn’t want to work with its arch-rival and potentially expose its secrets. Moreover, its resources are already stretched thin due to high demand from its existing clients, which also include Nvidia.
As far as Samsung is concerned, the rejection by TSMC means it must continue to rely on its in-house foundry for Exynos flagships. Some industry watchers expect the company to turn things around with the 2nm process later this year. However, it still has a long way to go. It remains to be seen if Samsung will approach TSMC again or if it will double down on its own foundry capabilities.
