Samsung has resisted relying on Chinese suppliers for materials to manufacture its OLED displays for a long time, but that is finally changing as the smartphone industry faces challenges. The company is considering (translated source) opening its doors to Chinese materials suppliers for future products, including Galaxy smartphones.
This decision is reportedly driven solely due to a singular reason: cost management. Simply put, smartphone manufacturers have little to no choice in keeping their devices at the same prices. This isn’t just because of supply chain shortages or industrywide uncertainty due to tariff rates, but also because of advancing technology.
Both the Galaxy S26 series as well as the iPhone 18 lineup — two product lines launching in 2026 — will rely on 2 nm chipsets. Apple will have its A20 chips made using TSMC’s (Taiwan Semiconductor Manufacturing Company) 2 nm processes. Samsung is trying to get its own 2 nm Exynos 2600 processors ready in time, but if it fails, the company will likely use the 3 nm Snapdragon 8 Elite 2 by Qualcomm. The Elite 2 chips will also be made by TSMC.
This shift towards 2 nm processors is going to drive up the cost of manufacturing phones. Qualcomm is reportedly considering two Snapdragon variants for the future, an approach similar to Apple’s base model and Pro model A-series chips.
The entire Samsung Galaxy S25 lineup uses the Snapdragon 8 Elite. | Image credit — Samsung
Apple is already considering raising the prices of the upcoming iPhone 17 series. To avoid having to do something similar, Samsung has even begun considering Chinese suppliers of organic materials. These materials are used for the manufacturing of OLED displays, which are crucial to Samsung’s products, such as its smartphones and TVs.
Samsung has remained hesitant to rely on Chinese suppliers in the past because it would have to share its roadmaps with them. However, with the way things are looking, it’s either that or jacking up the prices of upcoming Galaxy phones. Considering the current economy, neither Samsung nor Apple can afford to do that without risking losing a significant number of customers.
If Samsung is able to perfect its Exynos chips, that could be another avenue it could explore to reduce manufacturing costs. Both Apple and Samsung are ditching Qualcomm, and both of them are doing it to avoid costs that they deem unnecessary.
Abdullah loves smartphones, Virtual Reality, and audio gear. Though he covers a wide range of news his favorite is always when he gets to talk about the newest VR venture or when Apple sets the industry ablaze with another phenomenal release.
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