Samsung's Bold Comeback with Exynos 2600

This month marks a significant milestone for Samsung Electronics as it kicks off mass production of the Exynos 2600 mobile processor, set to power the anticipated Galaxy S26 smartphones next year.

Turning the Tide: A Revival for Samsung's Chip Business

After two years in the shadows, the Exynos chip is primed for a comeback, raising hopes for improved performance that may rejuvenate Samsung's struggling system LSI and foundry sectors, hampered by past yield issues and skepticism over quality.

Overcoming Past Challenges in Performance

The Exynos line has faced its share of backlash due to overheating, energy inefficiencies, and variable production quality, leading Samsung to forgo its use in this year's Galaxy S25 models. Previously, the company's strategy involved mixing Qualcomm's Snapdragon chips with Exynos in the Galaxy S21, S22, and S24 models. The reintroduction of Exynos in the S26 could not only slash mobile division costs but also boost confidence in the system LSI unit.

Excitement Around the 2nm Chip Technology

According to Park Yong-in, head of the System LSI division, the Exynos 2600 is being meticulously crafted to ensure it delivers robust results. This chip is particularly noteworthy as it utilizes Samsung's cutting-edge 2-nanometer gate-all-around manufacturing process, presenting a chance for the company to validate its capabilities in high-quality, stable mass production.

Stellar Early Performance Metrics

Initial Geekbench performance tests are painting an encouraging picture for the Exynos 2600, achieving scores of 3,309 in single-core and an impressive 11,256 in multicore benchmarks. This marks a dramatic improvement from previous generations, bringing its performance in line with Qualcomm’s forthcoming Snapdragon 8 Elite Gen 2, which secured scores of 3,393 and 11,515.

Potential Impact on Samsung's Financial Landscape

According to industry experts, if the Exynos 2600 maintains its performance edge and expands production, it could rekindle growth within Samsung's non-memory operations, which is crucial for the company’s overall profitability.

Signs of Recovery in Samsung's Foundry Business

Recent projections from Daishin Securities suggest that Samsung's Device Solutions division, inclusive of its LSI, foundry, and memory chip sectors, may post an operating profit of 5 trillion won ($3.6 billion) for the third quarter— a marked increase from just 350 billion won in the previous quarter.

Looking Ahead: A Brighter Future for Samsung

Industry analysts are optimistic about a surge in major global orders from companies like Nintendo, Tesla, and Valens, which are expected to enhance structural improvements in Samsung's foundry business beginning next year. Park Kang-ho of Daishin Securities noted that the foundry sector is on track for recovery, driven by new orders and the integration of Exynos processors in upcoming devices, including the Galaxy S26 Ultra.

With these developments, Samsung is poised for a comeback that might not only revive its chip business but also redefine performance expectations in the smartphone market.