Samsung is reportedly preparing to end development of new Exynos Auto processors, a move that would pull the company back from further investment in automotive system-on-chips while leaving existing customer commitments intact. Production of chips already ordered would continue, according to a report from South Korean outlet Munhwa.
The Exynos Auto initiative began in 2018 and is said to have secured Hyundai as a partner in 2023 and BMW in 2025. The reported decision is linked to weak profitability in the automotive chip business rather than an immediate cancellation of current supply agreements.
Developing a single Exynos Auto processor reportedly costs Samsung more than 100 billion won, or roughly $75 million, while each chip is supplied at an estimated $20 to $40. Qualcomm’s established position in automotive processors is also said to have made it harder for Samsung to generate acceptable returns in the segment.
Samsung is instead expected to concentrate its semiconductor investment on areas with stronger margin potential:
- Exynos application processors for smartphones, including a reported possibility that the Exynos 2700 could appear in the Galaxy S27 Ultra in Europe and South Korea.
- Image sensors, where Samsung has an agreement to supply sensors for future iPhone generations. Mass production is reported to begin this year at its Austin, Texas facility.
- AI data-center chips, display driver ICs (DDIs), and power-management ICs (PMICs).
Samsung has not officially confirmed that it will discontinue new Exynos Auto development. The key question is whether the company’s reported shift away from automotive processors will remain limited to new designs or lead to a broader restructuring of its automotive semiconductor ambitions after outstanding orders are completed.
