According to a report from South Korean media outlet The Financial News, MediaTek, Taiwan’s largest smartphone IC designer, has the opportunity to enter Samsung’s Galaxy S25 supply chain as one of the main chip suppliers for the next generation flagship smartphone. Samsung’s S series smartphones have traditionally adopted a “dual-track” strategy, using both in-house Exynos chips and Qualcomm’s Snapdragon. MediaTek, on the other hand, has declined to comment on this matter.

Samsung’s Galaxy Tab S10 is said to be equipped with MediaTek’s Dimensity 9300+ application processor, marking the first instance of MediaTek’s AP being adopted by Samsung’s flagship tablet, according to a report by the Korean media outlet The Chosun Daily.

The latest report by the Financial News further highlights that MediaTek’s APs have primarily been used in Samsung’s mid-to-low-end smartphones. The decision to use MediaTek’s AP in the Galaxy Tab S10 series, instead of Qualcomm’s or Samsung’s own APs, is a significant shift for Samsung.

The report indicates that Samsung’s Galaxy S25 smartphones will not only use Qualcomm’s Snapdragon 8 Gen 4 chips and Samsung’s own Exynos 2500 chips but may also use MediaTek’s Dimensity chips in some regions. It is speculated that the chip in discussion is the yet-to-be-announced Dimensity 9400. If true, the S25 could be available in versions with Exynos 2500, Snapdragon 8 Gen 4, and Dimensity 9400 chips.

The report cites sources, suggesting that this rumor is not entirely without merit, as Qualcomm’s Snapdragon 8 Gen 4 chip is expected to be 30% more expensive than its predecessor. Currently, the Snapdragon 8 Gen 3 chip is rumored to cost around $190-200 per unit, while the 8 Gen 4 could be priced at $260. Samsung’s consideration of incorporating MediaTek chips, or at least using this possibility as leverage in price negotiations with Qualcomm, is plausible.

Qualcomm has been releasing new flagship mobile chips annually and designing custom versions for Samsung’s high-end phones. For instance, the current Samsung S24 series, including the S24 Ultra and some regional versions of the S24 Plus and S24, use Qualcomm’s tailored Snapdragon 8 Gen 3 chip, designed specifically for Galaxy phones and featuring advanced AI capabilities.

It is worth noting that there is a close collaborative relationship between Samsung and Qualcomm. Some of Qualcomm’s chip manufacturing orders are handled by Samsung’s foundry division, while some of Samsung’s mobile chips use Qualcomm’s main processors. If MediaTek succeeds in integrating its Dimensity 9400 into Samsung’s smartphone supply chain, it would be a significant milestone for MediaTek.

The report from The Chosun Daily also highlighted that from Samsung’s perspective, choosing Dimensity to reduce costs and diversify the supply chain is a sensible decision.

Read more

• [News] Samsung Adopts Dimensity 9300+ Instead of Snapdragon, the First Time for Its Flagship Tablet to Feature MediaTek AP
• [News] MediaTek Announces 4nm Dimensity 7300 Series Chips, Supporting Foldable Devices

(Photo credit: MediaTek)

According to a report from Korean media outlet ZDNet Korea, the yield rate for Samsung Electronics’ latest Exynos 2500 processor has improved to slightly below 20% from single digits in the first quarter. However, the current yield rate is still said to be falling short of mass production standards. It remains uncertain whether it can be used in the flagship Galaxy S25 series smartphones in the future.

The report further indicates that this yield rate is still insufficient for mass production, which typically requires yields to be increased to over 60%. Therefore, Samsung Electronics’ System LSI department reportedly plans to work on improving the yield rate of the Exynos 2500 processor in the second half of this year.

The report states that it is still uncertain whether the Exynos 2500 processor can be used in the future Galaxy S25 series flagship smartphones. Since there is still considerable time before the official launch of the Galaxy S25 series, Samsung hopes to improve the yield rate of the Exynos 2500 processor to 60% by October this year.

On the other hand, TSMC is overwhelmed with 3nm orders, with major companies like Apple, NVIDIA, AMD, Qualcomm, Intel, and MediaTek all utilizing TSMC’s 3nm process. Per a report from TechNews, during TSMC’s technology forum on May 23, the 3nm production capacity this year has more than tripled compared to last year, but this is actually still not enough, so efforts are still being made to meet customer demand.

Read more

• [News] Major Clients Reportedly Fully Allocate TSMC’s Production Capacity Until 2026, 3nm Process in High Demand
• [News] Samsung Reportedly to Challenge Apple/TSMC with 3nm Exynos W1000

(Photo credit: Samsung)

Though being capable of running AI features may be the primary focus for global smartphones this year, due to restrictions on AI products’ usage in China, the Wall Street Journal reports that the upcoming new iPhone, expected at the end of the year, will not be able to use ChatGPT in China. Apple has reportedly been in discussions with companies like Baidu for potential partnerships, but no progress has been made yet.

China is Apple’s largest market for iPhones outside the United States. While smartphones from various brands will integrate AI this year at full throttle, incorporating apps like OpenAI’s ChatGPT, these apps from Western countries are not permitted for use in the Chinese market. According to the Wall Street Journal, industry insiders indicate that Apple is still searching for a Chinese AI partner. However, with the new iPhone set to launch in a few months, no progress has been made.

Notably, as per a report from TrendForce, in the first quarter, Apple faced a decline in sales in the Chinese market, resulting in a  drop in annual production to 47.9 million units.

In China, companies must obtain government approval to release AI devices. As of March this year, the Office of the Central Cyberspace Affairs Commission has approved 117 generative AI products, none of which are from brands outside of China.

The Wall Street Journal, citing industry sources, reported that Apple had tentatively inquired with Chinese authorities earlier this year about the possibility of allowing foreign language AI models on their smartphones. While believing approval to be unlikely, Apple has reportedly sought partnerships with local companies instead.

One of Apple’s main competitors, Samsung, has already launched the Galaxy S24 this year, featuring real-time translation and AI-enhanced photo editing and search capabilities. Samsung’s phone includes its own generative AI and also collaborates with Google. However, since Google’s AI tool Gemini is not permitted for use in China, Samsung has shifted to partnering with Baidu and Meitu AI.

It is not new for global tech companies to adjust their product and service offerings to cater to the Chinese market. For example, Apple uses state-owned enterprise servers for iCloud in China, and the recently launched Vision Pro cannot stream Apple TV+ in the country.

Read more

• Q1 Smartphone Production Increases Due to Low Base Last Year, Expected to Decline 5–10% in Q2, Says TrendForce
• [News] Continued Slump in iPhone Demand in China – February Shipments Reportedly Plunge by 33%

(Photo credit: Apple)

The upcoming iPhone 16 series from Apple is set to debut in the latter half of the year, and according to a report from Korean media outlet “The Elec,” LG Display, a major panel manufacturer in South Korea, has secured OLED panel orders from Apple for the iPhone 16 Pro Max model, ahead of its rival Samsung.

Earlier in May, both LG Display and Samsung Display secured orders for OLED panels for Apple’s iPhone 16 Pro, according to the report. Subsequently, LG Display also has acquired orders for iPhone 16 Pro Max panels, which could be the first time ever for LG Display to be ahead of Samsung display. 

Reports indicate that LG Display failed to secure the initial batch of orders for OLED panels for the iPhone 15 Pro last year, with the majority of orders going to its competitor Samsung Display. This bolstered Samsung Display’s profitability significantly. However, this year, LG Display has finally regained its footing by securing orders for both the iPhone 16 Pro and iPhone 16 Pro Max models, marking a turnaround in its fortunes.

However, Samsung Display continues to firmly hold orders for OLED panels for the iPhone 16 and iPhone 16 Plus models, while LG Display is responsible only for supplying OLED panels for the higher-end positioned iPhone 16 Pro and iPhone 16 Pro Max models.

Previous revelations from South Korean source yeux1122 also indicated that LG Display holds a higher share than Samsung Display in the supply of OLED screens for Apple’s new iPad Pro.

Read more

• [News] Leak Reveals LGD as the Largest Supplier of Apple’s OLED iPad Pro Screen

(Photo credit: Apple)

The continuous increase in silicon content driven by AI servers, high-performance computing (HPC) applications, and the AI integration of high-end smartphones has led to a surge in demand for semiconductors. According to a report from the Economic Daily News, major companies such as Apple, Qualcomm, NVIDIA, and AMD are reportedly securing substantial production capacity for TSMC’s 3nm process family. This has resulted in a queue of clients stretching all the way to 2026.

TSMC has a consistent policy of not commenting on individual client information. Regarding whether the high demand for production capacity will lead to price increases to reflect its value, TSMC emphasizes that its pricing strategy is always strategically oriented rather than opportunistically driven. TSMC will continue to work closely with clients to provide value.

As per sources cited by the same report, TSMC is not a company that raises prices arbitrarily. Reflecting value does not equate directly to price increases, even though the company holds a leading edge in advanced process technology. There are various ways for TSMC to demonstrate value to its customers.

The members of TSMC’s 3nm family include N3, N3E, N3P, as well as N3X and N3A. As the existing N3 technology continues to be upgraded, N3E, which began mass production in the fourth quarter of last year, targets applications such as AI accelerators, high-end smartphones, and data centers. N3P is scheduled for mass production in the second half of this year and is expected to become mainstream for applications in mobile devices, consumer products, base stations, and networking through 2026. N3X and N3A are customized for high-performance computing and automotive clients.

Source: TSMC

Industry sources cited by Economic Daily News in the report believe that with clients rushing to book production capacity, TSMC’s 3nm family will continue to experience tight supply over the next two years. This does not yet include Intel’s outsourcing demand for CPUs.

Due to the fact that TSMC’s 3nm family production capacity has already been fully allocated by customers for this year and next, the company’s plan to triple the relevant capacity this year compared to last year is still insufficient. To ensure an uninterrupted supply for the next two years, TSMC has implemented several measures to expand its production capacity.

Previously, during an earnings call, the company announced that due to robust demand, its strategy includes converting some 5nm equipment to support 3nm production. Industry sources cited by the report also reveal that TSMC’s total 3nm family capacity is continuously increasing, with monthly production capacity expected to reach between 120,000 and 180,000 wafers.

Meanwhile, the sources cited by the Economic Daily News indicate that the main sources of orders for TSMC’s 3nm family include major clients such as Apple, Qualcomm, NVIDIA, and AMD. Apple is expected to launch the iPhone 16 series as early as September, which is anticipated to be the first iPhone with AI capabilities, potentially sparking a new wave of upgrades among Apple fans.

Source: TSMC

Read more

• [News] NVIDIA CEO Jensen Huang Supports C.C. Wei’s Theory and Backs for TSMC to Increase Price
• [News] TSMC Says Tripling 3nm Capacity This Year Still Not Enough

(Photo credit: TSMC)