Samsung is looking forward to outsourcing the production of its Exynos SoCs to TSMC to easily tackle the challenges faced by its Foundry Division.
The key aim of taking this step is just to ensure the continued development and competitiveness of the Exynos line of processors for future Galaxy phones. This is being speculated by a post on X, shared by a well-reliable tipster, Junkanlosreve, that Samsung collabed with TSMC to prejudice Exynos SoC for Galaxy smartphones.
TSMC’s 3nm process is quietly retraced by major tech companies, for instance, Apple, MediaTek, and Qualcomm. On the other side, the Korean tech giant previously manufactured Snapdragon chips and experienced unfortunate development with the Snapdragon 8 Gen 1, which may have impacted its position as a chip manufacturer. As a result, Samsung Foundry is not self-dependent in producing in-house Exynos chips.
The Korean brand’s System LSI division, responsible for designing Exynos processors, has faced challenges with Samsung Foundry’s production yield rates. Now, to deal with the situation, it is making sure to continue the development and availability of Exynos processors by outsourcing their production to TSMC.
It’s expected that this strategic move will maintain Samsung’s negotiation power with suppliers and provide better products to consumers.