Samsung Exynos Chip (Image courtesy of Samsung Electronics)
SEOUL, Oct. 10 (Korea Bizwire) — Samsung Electronics is counting on its next-generation mobile processor, the Exynos 2600, to pull its struggling system semiconductor division out of a prolonged slump marked by quarterly losses exceeding 2 trillion won.
According to industry officials, Samsung has recently begun mass production of the Exynos 2600, a flagship mobile application processor (AP) built on the company’s advanced 2-nanometer process technology. The chip, designed by Samsung’s System LSI division and manufactured by its foundry arm, is expected to power the upcoming Galaxy S26 smartphone lineup next year.
The new Exynos represents a critical test for Samsung’s non-memory semiconductor operations, which have suffered repeated losses since late 2024. Its predecessor, the Exynos 2500, failed to make it into this year’s Galaxy S25 series due to performance and yield issues—an expensive setback that deepened the division’s financial strain in early 2025.
If the Exynos 2600 meets expectations and is successfully installed in the Galaxy S26, analysts say it could deliver a triple boost: improved profitability for both the foundry and system chip divisions, higher production utilization rates, and lower component costs for Samsung’s smartphone business.
Samsung’s device division spent 7.78 trillion won on mobile APs in the first half of this year, up 29 percent from a year earlier, as the Galaxy S25 series relied entirely on Qualcomm’s Snapdragon 8 Elite chip. That dependency has heightened the urgency for Samsung to revive its in-house chip program to reduce sourcing costs and enhance supply control.
The turnaround may already be underway. Hanwha Securities analyst Kim Kwang-jin estimates that Samsung’s non-memory semiconductor operating loss in the third quarter shrank to around 500 billion won, roughly 2 trillion won less than the previous quarter, thanks to improved utilization of advanced process lines below 7 nanometers.
Adding to the optimism, Samsung recently secured a 23 trillion won foundry deal with Tesla to produce next-generation AI6 chips, signaling renewed confidence in its foundry capabilities. With new orders also flowing into its mature process lines, industry observers say Samsung’s long-awaited rebound in the system semiconductor business may finally be within reach.
Kevin Lee (kevinlee@koreabizwire.com)
