Samsung is regarded as a major smartphone chipset customer for Qualcomm, which is likely why the latter recently renewed a multi-year agreement with the Korean giant to use its Snapdragon silicon. However, it can become worrisome if one company depends on just one client to bring in 40 percent of the total revenue for a specific quarter, but according to the data shared for Q4 2023, Qualcomm appears to be too dependent on Samsung in this regard. We have witnessed on previous occasions that things can go from bad to worse if companies cannot diversify.
The situation can become dire if Samsung can improve its Exynos chipsets to the point where it does not require Qualcomm’s SoCs any longer
Data published by Canalys shows that for Q4 2023, Samsung brought in 40 percent of Qualcomm’s Snapdragon chipset revenue. Xiaomi secured second place by accounting for 17 percent of the total revenue, but there is a major disparity between the two companies, and it needs to be addressed. In comparison, MediaTek has a more balanced outlook, with Samsung bringing in a quarter of its total smartphone chipset revenue, followed by Xiaomi at 17 percent.
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This means that even if the Korean behemoth were to forego all of MediaTek’s chipset designs for this year, it would not affect the Taiwanese fabless semiconductor manufacturer as much as it would Qualcomm. Just recently, we reported that MediaTek has added nearly all Android phone makers to its portfolio, with the exception of Google, and it has around 15 chipset designs alone for the first quarter of 2024. For the time being, Samsung has little choice but to remain tethered to Qualcomm.
While its Exynos 2400 saw major improvements compared to the Exynos 2200, it continues to lag behind the Snapdragon 8 Gen 3, and the Snapdragon 8 Gen 4 might likely be a better option compared to the Exynos equivalent that Samsung intends to launch later this year. The Snapdragon 8 Gen 4 is also said to be more expensive than the Snapdragon 8 Gen 3, which would force Samsung to make compromises elsewhere in its Galaxy S25 series to make decent margins.
At the same time, Samsung can jumpstart its foundry business to match TSMC’s quality, thereby mass producing improved Exynos SoCs that match its Snapdragon rivals in both performance and power efficiency, but that may take a while. Only recently, it was reported that the Korean firm’s advanced 2nm process is just a renamed second-generation 3nm node, meaning they will not be true 2nm wafers.
Qualcomm is likely aware that there is too much riding on Samsung’s partnership, which is why it was
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Apple’s iPhone SE 4 OLED orders were previously said to be fought over by suppliers Samsung and BOE. Given that this is the company’s low-cost offering slated to launch sometime in 2025, procuring cheaper displays would be Apple’s top priority since this component is largely dependent on how expensive a smartphone gets. On this occasion, a new report claims that BOE has apparently won the skirmish against Samsung on the pricing front and will likely be the exclusive panel supplier for the iPhone SE 4.
Samsung is rumored to be laser-focused on continuing a dual-chipset approach with the Galaxy S25 launch next year by introducing both the Snapdragon 8 Gen 4 and Exynos 2500 variants in several markets. According to the latest rumor, the company has supposedly commenced testing of its upcoming SoC, and according to the latest development, it is faster than Qualcomm’s Snapdragon 8 Gen 3 in both the CPU and GPU categories. However, that leaves us with more questions than answers, which we will discuss here.
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Samsung’s struggles in bringing up the yields of its 3nm GAA process were well-known, but there is a positive update that a tipster provided, claiming that the Korean giant’s foundry has managed to increase that number to three times the original figure. This means that the previous 10-20 percent yields of the 3nm process is now hovering between 30-60 percent. While these are improvements, the company continues to trail behind TSMC, and there are rumors claiming that Samsung placed more stock in its second-generation 3nm GAA process.
Samsung continues to make strides with microLED technology, but for the moment, the company has limited these displays to its mammoth-sized TVs, and as you can tell, these units cost a small fortune. The Korean giant is rumored to bring the same technology to a Galaxy Watch variant, with a tipster stating that its intended launch target is 2025. Unfortunately, with Apple previously reported to be experiencing its own struggles and withdrawing development altogether, a shadow of doubt may be cast on Samsung’s own plans, irrespective of the fact that the firm has immense experience with developing multiple display forms.
Switching to just the Snapdragon 8 Gen 2 for its Galaxy S23 family meant that Samsung had to bear a chipset expenditure that was in the billions, so it is unsurprising to learn that the Korean giant invested heavily in launching the Exynos 2400 that powers several Galaxy S24 variants. According to the latest report, Samsung will pursue a higher adoption of its own silicon as it aims to reduce these costs substantially.
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Apple’s ‘Project Titan’ was the company’s self-driving car ambition that had an estimated $10 billion invested in the venture. After a decade of rash decisions, delays, and frequent leadership changes, the autonomous vehicle development was axed entirely. In addition to the ludicrous expenditure, the efforts of various teams, including the Apple Silicon, went up in smoke, as these individuals were nearly finished with a custom chipset that was equal to not one, but a whopping four M2 Ultra SoCs, which is Apple’s most powerful in-house silicon to date.