Samsung made history by introducing its first 2nm GAA chipset to the masses, Exynos 2600, with the Korean firm’s semiconductor now shifting focus and resources towards the Exynos 2700, its next SoC that’s reported to use the improved iteration of the company’s 2nm node and launch just before the Galaxy S27 series launch in early 2027. For Samsung’s competitors, the Exynos 2600 would be brushed off as a one-time affair, but the Exynos 2700 sends an entirely different signal, one that could make Qualcomm and TSMC extremely nervous.

For both Qualcomm and TSMC, the Exynos 2700 represents a potential loss of business in different circumstances

With 2nm wafer costs and rising DRAM prices choking a smartphone manufacturer’s ability to generate decent margins, Samsung’s foundry resource is an excellent way to break free of the dreaded “Qualcomm tax.” With the Snapdragon 8 Elite Gen 6 Pro estimated to cost upwards of $300 per unit, the Exynos 2700 offers Samsung some respite, which is why the latter has been reported to adopt the SoC in 50 percent of all Galaxy S27 shipments next year.

This figure is a massive leap compared to the Exynos 2600 found in just 25 percent of all Galaxy S26 units, and that’s a scary future for Qualcomm because its handset business is already feeling lighter thanks to the memory shortage, forcing the chipset manufacturer to explore other profitable avenues. The Exynos 2700 doesn’t even need to be faster than the Snapdragon 8 Elite Gen 6 Pro, because even a marginally slower and more efficient silicon can generate a ton of eyeballs, boosting Samsung’s reputation.

Looking at the statistics, Samsung ships more Android flagships than any other company out there, and with Qualcomm potentially losing 50 percent of its Galaxy S27 shipments to the Exynos 2700, there is definitely a cause for worry. For TSMC, the next-generation 2nm GAA silicon represents Samsung’s efforts to claw back inch by inch and recapture the market share that it has lost to its Taiwanese nemesis.

If only it were that easy for Samsung

TSMC’s dominance over its semiconductor rivals is due to its focus on two areas; investing heavily in advanced nodes and stabilizing yields, enabling customers to obtain access to adequate wafer chipsets while lowering its production costs. For Samsung, its Achilles’ heel has always been achieving higher yields, even though it was the first to introduce its cutting-edge 2nm GAA node.

According to most reports, Samsung has yet to move past yields of 60 percent, and to actually make it worthwhile for customers to branch away from TSMC, that figure needs to be at least 70 percent. According to a previous report, despite TSMC experiencing overwhelming demand for its wafers due to the AI boom, Samsung is yet to be viewed as a viable alternative, with clients only paying attention right now because of its next-generation lithography.

Its yield problem is also why the Exynos 2800 is said to remain on the 2nm GAA process, with Samsung reportedly wanting to focus more on optimizations than on competing with TSMC to be the first to introduce the newest manufacturing process. Overall, the Exynos 2700 can boost Samsung’s semiconductor business, and its early testing can be proof that the Korean technology behemoth wants the SoC to serve multiple purposes. Do you think Qualcomm and TSMC should be nervous in the future? Let us know in the comments.

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