Samsung's Galaxy S25 series to see price hike with Qualcomm Snapdragon 8 Elite due to low Exynos 2500 yields. Launching January 22.

The highly anticipated Samsung Galaxy S25 series, set to be unveiled at the ‘Galaxy Unpacked’ event on January 22, is expected to comprise three models: the Galaxy S25, Galaxy S25+, and Galaxy S25 Ultra. A significant shift in the series’ production involves the adoption of the Qualcomm Snapdragon 8 Elite chipset across all models, driven by the inadequate production yields of the Exynos 2500. This strategic pivot is likely to influence the pricing structure of the new lineup.

Impact of Qualcomm’s Pricing on the Galaxy S25 Series

The introduction of the Qualcomm Snapdragon 8 Elite chipset in the Galaxy S25 series comes with a notable price tag of approximately $190 per chipset, which equates to around Rs 16,300. This cost is reflective of the advanced architecture, enhanced processing capabilities, and integrated AI features of the new chipset. The Snapdragon 8 Elite is also the first from Qualcomm to be manufactured using TSMC’s 3nm process node, a development that could potentially lead to an increase in production costs if TSMC decides to raise its prices.

Production Challenges and Strategic Decisions

Historically, Samsung has utilized Qualcomm chipsets for its flagship devices in markets like the US, Canada, and China, while employing its Exynos SoC in regions such as India. However, due to low yields of around 20-30% from its anticipated 70% target for the 3nm chips, Samsung Foundry has faced significant production challenges. This shortfall necessitates the use of a greater number of costly silicon wafers to meet the demand for its 2025 flagships, prompting Samsung to forgo the Exynos 2500 in favor of Qualcomm’s offering.

Market Dynamics and Historical Context

This isn’t the first instance of production issues influencing chipset sourcing decisions. Samsung encountered similar yield issues with its 4nm node, leading Qualcomm to shift the production of the Snapdragon 8 Gen 1 to TSMC. The resultant chipset was later upgraded to the Snapdragon 8+ Gen 1. As per the latest reports, TSMC holds a dominant 64% share of the contract foundry market as of Q3 2024, significantly outpacing Samsung Foundry’s 12%.

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Aditi Sharma

Aditi holds a Masters in Science degree from Rajasthan University and has 7 years under her belt. Her forward-thinking articles on future tech trends are a staple at annual tech innovation summits. Her passion for new tech trends ensures that our readers are always informed about the next big thing.