Samsung Electronics has confirmed plans to resurrect its Exynos processors for the Galaxy S26 series, marking the first time since 2024 that the company’s flagship smartphones will feature its homegrown chips alongside Qualcomm’s offerings.
The South Korean tech giant will equip the base and slim Galaxy S26 models with its Exynos 2600 processor, while reserving Qualcomm’s Snapdragon 8 Elite Gen 2 for the premium Ultra variant, according to industry sources. The dual-chip strategy revives Samsung’s previous regional approach, with Korean and European markets receiving Exynos-powered devices while North American customers get Qualcomm processors.
The decision represents a calculated gamble for Samsung, which abandoned Exynos chips in its flagship phones after performance and efficiency issues plagued earlier generations. The Exynos 2600, built on Samsung’s 2-nanometer Gate-All-Around process, has achieved yield rates exceeding 40% in recent tests, though this remains well below the 70% threshold typically required for profitable mass production.
Samsung’s renewed confidence stems partly from rising costs elsewhere. The company’s chipset procurement expenses surged nearly 30% in the first half of 2025, largely due to higher prices for Qualcomm’s Snapdragon 8 Elite processors. With TSMC, Qualcomm’s foundry partner, continuously raising wafer prices, Samsung faces mounting pressure to reduce its reliance on external suppliers.
Yet significant technical hurdles remain. While Samsung’s 2nm yields have improved from around 30% earlier this year, they still lag TSMC’s reported 60% achievement. Industry observers note that Exynos chips have historically underperformed Qualcomm’s offerings in benchmarks, particularly in graphics processing and power efficiency.
The stakes extend beyond smartphones. Success with the Exynos 2600 could validate Samsung’s massive investments in advanced chip manufacturing and potentially attract external customers to its foundry business. Conversely, another stumble could further damage the credibility of both Samsung’s System LSI design unit, which has reportedly lost approximately $400 million from the cancelled Exynos 2500 project, and its foundry division.
Samsung plans to finalize its chip allocation strategy by the fourth quarter of 2025, with mass production of the Exynos 2600 expected to begin around November. The Galaxy S26 series is anticipated to launch in early 2026, giving the company limited time to resolve any remaining production issues.
For Samsung’s mobile division, the return to dual sourcing offers both opportunities and risks. While internal processors could reduce costs and provide greater supply chain control, any performance gaps with Qualcomm’s chips could alienate consumers in competitive markets where technical specifications heavily influence purchasing decisions.
