Samsung may be facing a tough crossroads with its upcoming Galaxy S26 series, as the escalating cost of 2nm chipsets threatens its current production strategy.
Reports from the Korea Industry Post suggest that the tech giant is now exploring partnerships with Chinese suppliers for OLED materials-marking a major shift from its long-standing preference for Korean, American, and Japanese sources.
The culprit behind this potential pivot? The Exynos 2600. Built using Samsung’s new 2nm GAA process, this chip is expensive to produce-especially with prototype yields hovering around 50%. To become commercially viable and attract outside interest, Samsung’s foundry must hit at least a 70% yield rate. If it doesn’t, each wafer becomes an economic sinkhole, jeopardizing the affordability of future flagship models like the Galaxy S26.
One cost-saving strategy involves sourcing OLED components from China. While this could keep device prices manageable and allow for specification upgrades (an area where Samsung has lagged behind aggressive Chinese rivals), the move carries major risks. Chief among them is the potential exposure of proprietary OLED tech to Chinese firms-some of whom are already rapidly gaining ground in the display race.
Samsung’s OLED panels are widely regarded as the best in the industry, powering everything from its Galaxy lineup to Apple devices. Any knowledge spillover to Chinese competitors could eventually erode this key advantage. There’s also no word yet on whether Apple would allow Samsung to use Chinese materials in components destined for its own ecosystem.
For now, nothing is confirmed. But as the semiconductor arms race intensifies and costs soar, Samsung may have no choice but to compromise-either open up to Chinese partnerships or risk pricing itself out of its own market.