Samsung Electronics (005930) will host ‘Galaxy Unpacked 2026’ in London, UK, on July 22 (local time), unveiling its 8th-generation foldable phones. A total of three models will be revealed at the event: the Galaxy Z Flip 8, the Fold 8, and the newly added Fold 8 Ultra. The new products incorporate a significant number of Samsung’s own semiconductors and key components from its affiliates, making their market success a critical test for a rebound in the company’s non-memory business performance in the second half of the year.
The most closely watched aspect of the new lineup is the application processor (AP) configuration. Samsung Electronics has equipped the Flip 8 models for certain regions—including South Korea, Europe, and South America—with its latest self-designed AP, the ‘Exynos 2600’. In contrast, the Flip 8 models for North America and China, as well as all Fold 8 models, will feature Qualcomm’s ‘Snapdragon 8 Elite Gen 5’.
The Exynos 2600 is a chip designed by the System LSI Business division under Samsung’s Device Solutions (DS) division and manufactured by the Foundry Business division using a Gate-All-Around (GAA) based 2-nanometer process. It was first applied to the standard and Plus models of the Galaxy S26 launched earlier this year, receiving positive reviews for its artificial intelligence (AI) and gaming performance. With its inclusion in the Flip 8, a full-scale expansion of shipments is expected, with initial revenue already reflected from the end of the second quarter and anticipated to peak in the third quarter.
However, the Exynos’s reduced footprint compared to its predecessor is a concern. The previous Exynos 2500 was installed across all Galaxy Z Flip 7 units without regional distinction upon its 2025 launch, but the Flip 8’s application is limited to specific countries. A similar trend is detected in the wearable lineup. According to the Chosun Ilbo, the Galaxy Watch 9 will use Samsung’s own ‘Exynos W1000’ chip, but the top-tier Galaxy Watch Ultra 2 will be equipped with Qualcomm’s ‘Snapdragon Wear Elite’. This marks a reversal from last year’s Galaxy Watch Ultra, which adopted an Exynos chip.
Industry observers analyze this as a result of the Mobile eXperience (MX) Business prioritizing performance competitiveness over cost reduction. Even as memory prices rise and AP costs climb sharply, Qualcomm chips were selected for premium models demanding higher performance. Indeed, Samsung Electronics’ mobile AP purchases reached 4.2 trillion won (approximately $2.94 billion) in the first quarter of this year, with the average price reportedly rising by about 12% year-over-year.
Despite this, the securities industry views the successful establishment of the Exynos 2600 as a contributor to the recovery of the sluggish non-memory business. The System LSI and Foundry divisions are narrowing their quarterly losses, and there is cautious speculation about a potential return to profitability as early as the first half of next year. Analysts also suggest that if the MX Business increases the proportion of Exynos adoption in the future, it could reduce its reliance on expensive Qualcomm chips and improve profitability.
Samsung Electronics is already accelerating the development of next-generation chips. Park Yong-in, President and head of the System LSI Business, stated at a management briefing last month, “The Exynos 2700 is under development without a hitch, targeting integration into flagship models.” The industry is paying close attention to the possibility of an expanded Exynos application scope in the Galaxy S27 series, expected to launch in early 2027.
Beyond the AP, the new products feature a comprehensive array of Samsung’s semiconductor technology. Components such as a 200-megapixel image sensor, display driver ICs (DDI), power management ICs (PMIC), and 5G modem chips are applied to the new foldable devices, expected to contribute to improved non-memory earnings.
Benefits for affiliates are also anticipated. Samsung Display supplied organic light-emitting diode (OLED) panels featuring ‘Flex Titanium’ technology, which reduces creases and thickness, across all models. Samsung Electro-Mechanics secured second-half earnings momentum by supplying silicon capacitors for the Exynos 2600, as well as camera modules, semiconductor package substrates, and multi-layer ceramic capacitors (MLCCs).
This Galaxy Unpacked event is expected to be more than just a new product launch; it will serve as a stage to test the competitiveness of Samsung Electronics’ non-memory semiconductors. The industry’s eyes are on London to see if the Exynos’s performance can lead to expanded adoption in future models and a recovery in market share.