Exynos: Samsung may change strategy and launch new cell phones with its own chip in the USA

2023-09-20 10:23:00

Samsung appears to be working on a new strategy for its in-house production of proprietary chips. According to information revealed this Wednesday (20) by leaker Revegnus, the South Korean manufacturer will start producing the Exynos platforms at its factory located in Taylor, in the state of Texas, United States.

The brand’s processors are usually produced in its factories in South Korea, however, the informant states that the objective of producing chips in the West is to avoid delays in the production schedule with 4 nanometer lithography, since the manufacturer struggled to attract foundry customers to its North American installation.

In practice, this might mean that the company’s factories are operating with low demand in the United States. Therefore, the production of its proprietary chips must ensure that the raw materials in stock are used as planned.

The leaker adds that with the new production strategy at the Texas factory, there is a possibility that the Exynos will be used in cell phones sold in the United States. It is worth noting that the sources do not specify which processors will be made in the country, therefore, it is possible that this hardware will be aimed at mid-range smartphones.

Economy and market
20 Set

Economy and market
20 Set

However, it is important to note that rumors point to the production of chips with 4 nanometer lithography — currently used in advanced Samsung chips, such as the Exynos 2200, which powers some versions of the Galaxy S22.

Unless the South Korean intends to update its intermediate chips — such as the Exynos 1280 — with the most advanced lithography available in its factories, it is possible that the Texas factory will be responsible for part of the production of the Exynos 2400, a supposed platform that would be used in select versions of the Galaxy S24 in 2024.

The tactic would not be unprecedented. Qualcomm, for example, already uses 4 nanometer processes in its basic platforms, such as the Snapdragon 4 Gen 2. If Samsung focuses on producing hardware aimed at basic and mid-range cell phones, it is likely that we will see successors to the Galaxy A14 and Galaxy A34 with Exynos in the United States, for example.

It is important to note that the information shared by leakers is provided by people familiar with Samsung’s projects, however, it is always necessary to treat them as rumors until any product is officially announced by the brand.

Samsung optimizes 4 nanometer process

A report released in July indicated that Samsung had refined its 4 nanometer process, allowing it to achieve a yield rate above 75%, its highest utilization rate since the start of production of this technology.

In addition to improving production cost efficiency, one of the factors that made it possible to improve the yield of the South Korean company’s 4-nanometer lithography was, contradictorily, the reduction in orders in view of the problems of excessive chip heating.

The drop in capacity utilization has had a “surprisingly positive” impact on lithography quality, according to people familiar with the matter.

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