Samsung is reportedly rethinking its long-standing resistance to Chinese suppliers for OLED display materials, as rising production costs force the tech giant to consider new strategies. 
For years, Samsung has relied on in-house and South Korean partners for components, but with the smartphone market facing tighter margins, the company is now open to sourcing organic materials from China for its future Galaxy devices.
This pivot is primarily driven by economic pressures. As smartphones grow more advanced, especially with the shift to next-generation 2nm chipsets in 2026, manufacturing costs are ballooning. Apple’s iPhone 18 lineup will debut with A20 chips built on TSMC’s 2nm process, while Samsung is aiming to launch its own Exynos 2600 chips using a similar node. However, if Samsung’s in-house chips aren’t ready, it may rely on Qualcomm’s Snapdragon 8 Elite 2 – a 3nm processor, also produced by TSMC.
These cutting-edge chips come with significantly higher production costs, and Samsung is keen to avoid passing those costs to consumers by raising phone prices. Apple is already rumored to be raising prices for the iPhone 17 series, and Samsung doesn’t want to follow suit. As a result, exploring cost-effective supply chains – including Chinese suppliers for OLED materials – has become a serious consideration.
Traditionally, Samsung has been cautious about Chinese partnerships, mainly due to concerns about sharing sensitive product roadmaps. But in today’s economic climate, maintaining competitive pricing is becoming more critical than maintaining exclusivity. Sourcing OLED components from Chinese manufacturers could give Samsung the flexibility it needs to absorb chipset cost hikes without shocking consumers with higher prices.
Additionally, both Samsung and Apple appear to be gradually moving away from Qualcomm as they develop their own chip solutions to control production costs. If Samsung’s Exynos 2600 meets performance expectations in time for the Galaxy S26 launch, it may help the company avoid outsourcing to Qualcomm altogether.
As the industry braces for a high-cost transition to 2nm chipsets, Samsung’s pragmatic shift could signal a broader trend in how tech giants manage supply chains and navigate pricing pressures in a competitive global market.