MediaTek, a prominent player in the mobile phone chip market, is poised to potentially join the supply chain for Samsung’s upcoming Galaxy S25 series. Historically, Samsung has relied on a dual-chip strategy, utilizing both its in-house Exynos chips and Qualcomm’s Snapdragon processors. According to Korean media outlet The Financial News, the Galaxy S25 lineup might integrate MediaTek’s yet-to-be-announced Dimensity 9400 chip alongside the Snapdragon 8 Gen 4 and Exynos 2500 chips.
This diversification in Samsung’s chip supply is seen as a strategic move, partly driven by the rising costs of Qualcomm’s latest chips. The Snapdragon 8 Gen 4 is expected to be approximately 30% more expensive than its predecessor, potentially reaching around $260 per unit. This price hike provides Samsung with a compelling reason to explore alternatives such as MediaTek’s Dimensity chips, either to mitigate costs or to leverage in negotiations with Qualcomm.
The market has speculated about Samsung’s commitment to enhancing the yield rates of its Exynos 2500 chips, which currently stand at around 40%. Despite aiming for a 60% yield by August, the inclusion of MediaTek could offer a reliable contingency plan.
Samsung and Qualcomm maintain a robust collaborative relationship, with some of Qualcomm’s manufacturing delegated to Samsung’s foundry division. This close cooperation might continue to favor Qualcomm chips in regions like the United States, while MediaTek and Exynos could cater to markets in Europe, India, and South Korea.
If MediaTek succeeds in penetrating Samsung’s supply chain, it would mark a significant milestone, potentially enhancing its competitive standing in the high-end smartphone market.
