Samsung reportedly halting new Exynos Auto processor development

Samsung is reportedly halting the development of new Exynos Auto processors intended for the automotive industry after facing high production costs and dominant market competition, mobilissimo.ro reported. The South Korean technology giant has reportedly decided to sunset the project following substantial investments that began in 2018.

High Costs and Market Pressure Drive Strategy Shift

Developing a single Exynos Auto processor reportedly costs over 100 billion won, which equals roughly 75 million dollars, while the supply price per chip sits between 20 and 40 dollars. Qualcomm currently dominates the automotive processor market, complicating profitability for Samsung in this segment. Despite these hurdles, existing contracts with automakers will be honored, and the manufacturing of already ordered automotive chips will continue.

Samsung previously secured major automotive partnerships for the platform, including an agreement with Hyundai in 2023 and another with BMW in 2025. The decision to step back from new automotive silicon development reflects a broader corporate shift toward business segments boasting higher profit margins.

Focus Shifts Toward Smartphones and AI Data Centers

With automotive development winding down, Samsung plans to concentrate resources on smartphone processors and camera sensors. Reports indicate that the Exynos 2700 processor could power the upcoming Galaxy S27 Ultra smartphone in Europe and South Korea. The company also secured a contract with Apple to supply camera sensors for future iPhone generations, with mass production starting at the Austin, Texas facility.

Beyond mobile hardware, Samsung is exploring expansion into artificial intelligence data center chips, display driver integrated circuits, and power management integrated components. These areas offer stronger financial returns compared to the custom automotive processor line.

Samsung Has Not Confirmed Exynos Auto Cancellation Reports

The details regarding the cancellation of future Exynos Auto development originate from South Korean media coverage, specifically the publication Munhwa, and lack official confirmation from Samsung.