Samsung unveiled its latest trio of flagship smartphones this week, with promotional campaigns set to roll out across major global markets in the coming weeks. However, persistent concerns about its chip strategy have placed Samsung in a challenging "triple dilemma" that remains unresolved.
Following the same pattern as the Galaxy S24, the Galaxy S25 series features three distinct models, all powered by Qualcomm's Snapdragon 8 Elite for Galaxy chipset. This chip was specifically designed to support the expanding capabilities of Samsung's Galaxy AI features. While Samsung confirmed months ago that the Galaxy S25 would exclusively use Qualcomm chips, the decision to rely entirely on Qualcomm for two consecutive years has raised concerns. Industry observers now believe it is nearly impossible for Samsung to reintroduce its own Exynos chips into the Galaxy flagship lineup.
TSMC production rumors surface
According to market speculation, Samsung initially planned to transfer the production of Exynos chips to TSMC. However, the foundry giant reportedly rejected the proposal, citing concerns about potential technical leaks.
Industry insiders familiar with the semiconductor sector argue that, given Samsung's status as a non-sensitive manufacturer, it would be unlikely for TSMC to genuinely refuse the order based solely on such concerns.
While the validity of these rumors remains uncertain, transferring Exynos production to TSMC is viewed as one possible solution to help alleviate Samsung's current dilemma. However, this move could have significant ramifications, particularly by impeding the development of Samsung's own foundry business. Samsung's "triple dilemma" now makes it increasingly difficult to balance all three critical areas.
Understanding the triple challenge
Samsung's triple dilemma stems from the need to balance three crucial aspects: foundry services, integrated circuit (IC) design, and mobile phone sales. Given the current state of technology, it appears impossible for Samsung to address all three areas simultaneously without sacrificing at least one to preserve the other two.
Transferring Exynos production to TSMC could ensure that its hardware manufacturing capabilities remain competitive with industry leaders like Qualcomm, MediaTek, and Apple, according to experts. However, this shift would only address one part of Samsung's broader dilemma, as their advanced manufacturing capabilities remain the most challenging gap to close.
Exynos faces mounting challenges
The question now is how Exynos can be salvaged. The challenge grows more formidable as time progresses. Mobile SoC (System on Chip) experts point out that the rapid pace of technological iteration in the sector makes it difficult for Exynos to regain a competitive edge, especially given its two-year absence from the flagship market. Without real-world feedback and product improvements, it will be challenging for Exynos to catch up with its rivals.
If Samsung continues to prioritize mobile phone sales over chip development, Exynos will become less reliable for the company's mobile division, ultimately eroding consumer confidence. The extended absence from the market makes it increasingly difficult for Exynos to regain its footing.
MediaTek advances in the premium segment
Meanwhile, MediaTek's Dimensity flagship series continues to challenge Samsung's dominance in the high-end smartphone market. MediaTek has already established a presence in the premium tablet market and is reportedly targeting the Galaxy FE series for the second half of 2025. This move would intensify competition with Qualcomm for dominance in the Galaxy S series over the next two years.
Strategic implications
Industry experts assert that both Qualcomm and MediaTek now maintain a firm grip on the mobile SoC market. With Samsung falling behind in both production and design technologies, Exynos will likely continue to trail in the mobile SoC arena. As a result, Samsung's triple dilemma may ultimately force the company to prioritize its mobile sales, potentially leaving its chip ambitions in jeopardy.