Qualcomm has solidified its partnership with Samsung, ensuring that no enhancements in Samsung’s Exynos chip lineup will enable the company to escape Qualcomm’s grasp in the near future.
Samsung: Qualcomm’s Golden Goose and the Promise of the Galaxy S26 Ultra
Understanding the Samsung/ Qualcomm Partnership. How it impacts the United States and other Regions. In July 2022 Qualcomm and Samsung extended their patent-license agreement through the end of 2030. This gives Samsung rights to use Qualcomm’s patented technologies across… pic.twitter.com/gEYz0RiEPu
— Jason C.(@_TheJasonC) October 23, 2025
As part of an ongoing patent-license agreement valid until 2030, Samsung has locked in the right to utilize Qualcomm’s proprietary technology. Additionally, in 2024, Samsung cemented a comprehensive multi-year deal granting it access to the leading Snapdragon chips.
While these arrangements assure Samsung continued access to cutting-edge technology, they also come with significant costs that are pushing the company into stringent budget cuts. This has led to design alterations, such as the introduction of an oversized selfie camera hole in the latest Galaxy S-series Ultra model.
Recent reports indicate that Samsung will utilize the Qualcomm Snapdragon 8 Elite Gen 5 chip exclusively in the upcoming Galaxy S26 Ultra. Though Qualcomm previously suggested it would hold a substantial 75 percent market share with the Galaxy S26 series, this adjustment represents a noteworthy financial boon for Qualcomm.
To put this into perspective, the Snapdragon 8 Elite chip employed in the Galaxy S25 Ultra carried a price tag of approximately $190 per unit, accounting for around 36 percent of that device’s total Bill of Materials (BOM), which was about $523. Conversely, the Snapdragon 8 Elite Gen 5 is expected to cost between $240 and $280 per unit, which could represent about 46 percent of the Galaxy S26 Ultra’s estimated BOM of $613, assuming the upper unit cost of $280.
Furthermore, TSMC has alerted its major customers about forthcoming price increases—between 8 to 10 percent—on sub-5nm advanced chip manufacturing processes starting next year. This implies that the costs associated with the Snapdragon 8 Elite Gen 5 may increase even more.
Additionally, Samsung incurs a royalty fee of $16.25 for every smartphone it sells, compensating Qualcomm for the use of its technologies. In the first half of 2025 alone, Samsung’s sales of the Galaxy S25 series totaled around 22.5 million units, generating approximately $365 million in royalties for Qualcomm.
The escalating prices of essential components, such as LPDDR5X memory, are intensifying financial pressures on Samsung, compelling the company to make compromises like utilizing larger bezels or a more pronounced camera cutout in the Galaxy S26 Ultra.
However, the most pressing concern arises from the financial implications of the Snapdragon 8 Elite Gen 5. This context highlights the significance of Samsung’s upcoming Exynos 2600 chip. If the Exynos 2600 proves capable of competing with Qualcomm’s latest flagship chip, Samsung could leverage this as a strong negotiation tool. Early indications have shown promise for the Exynos 2600, but it must demonstrate its capabilities in real-world applications.
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