Samsung Spent Almost $9 Billion In Chipset Purchases In 2023, But It Aims To Bring Down That Cost By Adopting More Exynos SoCs

Switching to just the Snapdragon 8 Gen 2 for its Galaxy S23 family meant that Samsung had to bear a chipset expenditure that was in the billions, so it is unsurprising to learn that the Korean giant invested heavily in launching the Exynos 2400 that powers several Galaxy S24 variants. According to the latest report, Samsung will pursue a higher adoption of its own silicon as it aims to reduce these costs substantially.

Looking at how the Snapdragon 8 Gen 4 has been hinted to be more expensive than the Snapdragon 8 Gen 3, Samsung is making the right play to reduce chipset costs

Procuring cutting-edge chipsets will give Samsung’s products more advantages and improve the user experience but at a literal expense. According to Pulse News, the company spent around $8.87 billion in chipset purchases in 2023, marking a 3.1 percent increase compared to 2022. Samsung has mentioned in a statement that smartphone SoC prices have jumped massively, creating a 30 percent difference compared to 2022, and these figures do not appear to decelerate anytime soon.

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After all, even companies such as Qualcomm, which provides Samsung with these chipset shipments, have to employ TSMC’s advanced wafers, and utilizing this technology does not come cheaply. A Qualcomm executive has already hinted that the Snapdragon 8 Gen 4 will be more costly than the Snapdragon 8 Gen 3 as the company shifts from ARM’s CPU designs to its custom Oryon cores, and the Snapdragon 8 Gen 3 is no affordable component either, as it is estimated to cost $200.

Realizing that there might not be an end to these rising chipset costs, Samsung has increased production of its Exynos SoCs, though earlier, there was an opportunity to enter into a partnership with MediaTek too. Unfortunately, MediaTek did not have an adequate supply of its flagship Dimensity chipsets at the time, otherwise, the early Galaxy S series may