Samsung May Save Big on Chip Costs with Exynos 2600 in Galaxy S26

As you know, Samsung’s most high-end smartphones use Qualcomm’s Snapdragon processor. However, in recent years, the American chipmaker has increased the prices of its mobile APs, which is a concern for the Korean giant. While the company has its own chips, it continues to face setbacks due to low yield and other reasons. It’s high time for Samsung to overcome these hurdles and make use of its Exynos 2600 in the Galaxy S26 series.

Samsung’s spending on chips has increased greatly this year

According to a report from Newsis, Samsung’s Device Experience (DX) division spent 7.7899 trillion won on mobile APs in the first half of this year. This is a 29.2% increase from 6.0275 trillion won during the same period last year. The reason behind the rising purchase amount is the use of the Snapdragon flagship chipset in the Galaxy S25 series and Galaxy Z Fold 7.

Due to growing manufacturing costs at TSMC, Qualcomm has also increased its chip prices to maintain its profit margins. However, despite the higher price, Samsung’s Mobile Experience (MX) division, which makes Galaxy smartphones, had to buy Qualcomm chips. If Samsung continues purchasing chips from the third-party supplier, its smartphone production costs will keep increasing.

The MX division should reduce reliance on Qualcomm and opt for in-house Exynos chips to save money. This will be possible only if Samsung can improve the performance, yield, and other issues. The good news is that the upcoming 2nm Exynos 2600 is on the right track, and the company may consider using it in the Galaxy S26 series, at least in some regions.

If successful, the Korean firm will make more profit from its flagship series next year. “The Exynos 2600’s inclusion in flagship models and the foundry turnaround will further increase profit expectations next year compared to this year,” said Kim Kyung-bin, a researcher at Samsung Securities.