Samsung could soon copy Apple’s approach with its own Exynos chips

Samsung traditionally relies on Exynos chipsets, designed by its LSI division, for some of its flagship and mid-range phones. However, a report out of Korea suggests that Samsung could take a page out of Apple’s playbook and more tightly integrate its smartphones and chips.

The Business Post reports that Samsung is reviewing a plan to transfer the Exynos chip unit from the LSI division to the mobile experience (MX) division. This is the unit responsible for Samsung Galaxy phones, tablets, watches, and more. However, the outlet suggests that there is “significant internal disagreement” regarding this proposal.

The outlet likened the proposed move to Apple’s chip strategy with its iPhones and iPads:

It has been reported that one of the ways to strengthen Exynos competitiveness is to transfer the Exynos AP [application processor – ed] business, currently handled by the System LSI Division, to the MX Division. This means that the company will change direction to a method in which the smartphone division designs its own APs, like Apple.

Would this be a good thing?

Samsung’s LSI unit, currently responsible for Exynos chip designs, is effectively run like a standalone unit. The unit even refers to the MX division as a client during earnings calls, which highlights the portrayed relationship between the two arms. So bringing the Exynos business into Samsung’s smartphone division could make for closer ties and chips that are more customized for the specific needs of Galaxy devices. Proper in-house chip development could also theoretically reduce smartphone production costs, with these savings potentially passed on to consumers.

Samsung LSI also previously supplied Exynos chips to vivo and Meizu over the years. More recently, it’s assisted Google in developing the Tensor series of chips for Pixel phones. The Business Post reports that Samsung’s MX division absorbing the Exynos unit could mean that it’s “virtually impossible” to supply chips to other smartphone makers. It’s unclear what this would mean for Tensor chips, although Google has reportedly been seeking to reduce its reliance on Samsung.

It’s believed that the smartphone unit might oppose this proposal as the LSI division and Exynos unit recently experienced losses. These losses would affect the mobile unit’s financial performance. The outlet also reports that the upcoming Exynos 2600 chip could play a pivotal role in the LSI division’s fortunes. That means any firm decision on the fate of the Exynos unit might only be made towards the end of the year, when the chip is expected to go into mass production.

Even if Samsung’s mobile business absorbs the Exynos unit, there is still one potential stumbling block, and that’s the Samsung Foundry division. Samsung Foundry has always manufactured Exynos chips, but its manufacturing processes have historically lagged behind rival TSMC when it comes to yield and efficiency. So there’s every chance consumers could still get Exynos-powered phones that are hotter and less powerful than Snapdragon variants, even if Exynos chips are now designed to the precise demands of Samsung’s smartphone unit.