Samsung’s upcoming Galaxy S25 flagship series is set to feature Qualcomm’s Snapdragon 8 Elite application processor (AP), which costs up to $190 per chip. This marks the first Snapdragon chip manufactured using TSMC’s advanced 3nm process.
However, rising costs and TSMC’s rumored 10% price hike for 3nm/5nm production next year could lead to a price increase for the Galaxy S25 lineup.
Traditionally, Samsung uses its Exynos chips for Galaxy models outside the U.S., Canada, and China. However, Samsung Foundry’s low 3nm yield, reportedly between 20% and 30%, makes mass production of the Exynos 2500 unfeasible.
Typically, a 70% yield is required for cost-effective production. As a result, Samsung will rely exclusively on Qualcomm’s Snapdragon 8 Elite for the Galaxy S25 series.
The Snapdragon 8 Elite offers impressive performance, featuring two Prime Cores clocked at 4.32GHz and six Performance Cores at 3.53GHz, with no efficiency cores. This design mirrors MediaTek’s recent approach with the Dimensity 9300 and 9400 chips.
Samsung Foundry’s yield challenges have broader implications. The foundry lost the opportunity to produce the Snapdragon 8 Elite 2 and faces stiff competition from TSMC, which holds 64% of the contract foundry market compared to Samsung Foundry’s 12%.
Looking ahead, Samsung must address its yield issues to avoid similar setbacks with future chipsets, such as the Exynos 2600 for the Galaxy S26 series.
Meanwhile, consumers may have to brace for higher prices as Samsung navigates these challenges.
