Samsung Explains Why Exynos Chips Continue to Trail Behind Qualcomm

1 week ago 5

   

| Updated: Thursday, November 14, 2024, 15:45 [IST]

Samsung’s ambitious plans to power its upcoming Galaxy S25 series with its in-house Exynos 2500 chip are reportedly hitting delays due to South Korea’s strict 52-hour workweek limit.

This development has caused the company to shift its strategy for the flagship Galaxy S25 Ultra model, which will now feature Qualcomm’s Snapdragon 8 Elite processor globally, while the Exynos chip may only be used in the base and Plus models.

Samsung Explains Why Exynos Chips Continue to Trail Behind Qualcomm

Workweek Cap Limits Exynos 2500 Development

According to a report from The Chosun Daily, The South Korean government’s cap on work hours, which limits employees to a 40-hour workweek with an additional 12 hours of overtime, has posed challenges for Samsung’s Exynos development team. With deadlines tightening and restricted working hours, Samsung’s engineers have been unable to keep up with crucial development timelines, reportedly leaving critical tasks incomplete.

Sources familiar with the situation revealed that some Samsung employees are putting in unpaid overtime to meet project demands, though the workweek regulation complicates consistent workflow. In response to these constraints, Samsung’s management has engaged South Korean lawmakers, discussing potential exemptions to prevent such restrictions from impacting the company’s competitiveness on the global tech stage.

Samsung’s Competitors in Taiwan and the U.S. Face Fewer Limitations

Samsung’s rivals in the semiconductor industry operate under different labor regulations, impacting their development pace and flexibility. For instance, Taiwan’s TSMC, a key competitor, adheres to a 48-hour workweek, including 36 monthly overtime hours, allowing for a somewhat more flexible workflow compared to South Korea’s limits. Meanwhile, American firms like Qualcomm and Apple face no legal workweek limits, which provides additional leeway for extended hours when projects demand it.

While other South Korean companies like SK Hynix operate under the same workweek restrictions, Samsung’s broad portfolio, which includes custom semiconductor designs and foundry services, makes it harder to sustain competitive timelines without flexible working hours. In the context of these global and regional differences, Samsung’s productivity and competitive positioning may be affected if it cannot secure more adaptable work regulations.

The Galaxy S25 Series: A Shift Toward Qualcomm for the Ultra Model

The production challenges with the Exynos 2500 have led Samsung to opt for Qualcomm’s Snapdragon 8 Elite chip for the Galaxy S25 Ultra, a shift indicating that the Exynos processor may not meet performance standards for Samsung’s 2025 flagship. The Exynos chip, however, is still expected to power the Galaxy S25 and S25+ models. Alternatively, reports suggest Samsung may consider using MediaTek’s Dimensity 9400 chip in these models as well.

This chipset distribution strategy appears to be financially motivated. The cost of the Snapdragon 8 Elite reportedly approaches $200, making it too costly for Samsung’s budget on the base and Plus models. By reserving this high-performance processor for the Ultra model, Samsung can balance costs while still offering the Ultra model as the premium choice in the Galaxy S25 lineup.

Source

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