Samsung Electronics’ mobile application processor spending reached KRW 10.93 trillion (approximately A$11.3 billion) from January to September 2025, up 25.5% year-on-year, prompting plans to reintroduce in-house Exynos chips in the Galaxy S26 to cut costs.

The sharp rise stems from Samsung’s use of Qualcomm Snapdragon chips across the entire Galaxy S25 smartphone lineup, breaking from its typical dual-chip strategy.

Samsung intended to include its Exynos 2500 in some S25 models, but performance concerns led to full Snapdragon deployment.

Snapdragon chips were also used in the Galaxy Z Fold7, while the Exynos 2500 appeared only in Galaxy Z Flip7 phones.

The nine-month spending already equals Samsung’s total mobile AP expenditure for all of 2024.

Industry watchers note that Snapdragon chips are nearly six times more expensive than Exynos counterparts.

Combined with a weak Korean won against the dollar, Samsung faced mounting import costs for chipsets from both Qualcomm and MediaTek.

Mobile APs typically account for around 30% of a handset’s production cost.

To improve profitability, Samsung will bring back its Exynos line in flagship Galaxy S devices after a two-year hiatus.

The Exynos 2600, designed by Samsung’s system LSI division and produced by its foundry division, is expected to launch with the Galaxy S26 in early 2026, paired with Qualcomm processors in a mixed-chip strategy.

Despite these plans, Qualcomm CEO Cristiano Amon projected Snapdragon processors would power about 75% of Galaxy S26 devices during the company’s recent earnings call.

An industry source familiar with Samsung’s internal discussions said the final Exynos-to-Snapdragon ratio is “still under review,” adding that growing AI demand could further strain global chip supply and pricing.

“Samsung needs to boost in-house chip usage to ease cost pressures and to regain leverage and reinforce its position in chip design,” the source said.

The return to Exynos represents Samsung’s attempt to reduce reliance on external suppliers and improve margins amid competitive pressure in the premium smartphone market.

The strategy balances cost reduction with performance expectations, particularly as AI features become standard in flagship devices.