With the push to advance artificial intelligence (AI) and rising performance demands on smartphones, a forecast said nodes on advanced processes at 5 nanometers (nm) or smaller will account for 60% of total smartphone system-on-chip (SoC) shipments.

Samsung Electronics' premium AI smartphones Galaxy S26 series and Apple's budget iPhone 17e go on sale simultaneously on the 11th. Galaxy S26 records 1.35 million pre-orders even for the Ultra model priced over 2 million won. Apple prices iPhone 17e at 990,000 won as a value-for-money strategy. Pictured are Galaxy S26 Ultra (left) and iPhone 17e on the 11th./Courtesy of News1

According to Counterpoint Research's Global smartphone SoC shipments outlook report on the 24th, the share of advanced processes at 5 nm or smaller exceeded 50% last year and is expected to increase to about 60% this year. With improvements in power efficiency and enhanced AI features, adoption of advanced processes is expanding not only in premium models but across midrange smartphones.

However, due to memory supply constraints, total smartphone SoC shipments this year are expected to decline by double digits from a year earlier. Shipments on 2 nm and 3 nm processes are projected to grow 18% year over year and be installed in about one out of every three smartphones.

Samsung Electronics is leading the 2 nm process market by installing the industry's first 2 nm process-based mobile application processor (AP), the Exynos 2600, in the Galaxy S26 series.

Shivani Parashar, a senior analyst at Counterpoint Research, said, "Samsung is emerging as an early adopter of the 2 nm process, similar to how Apple led the transition to 3 nm in the past," and noted, "At the same time, by expanding the use of its own chipsets in midrange smartphones, it is increasing competitive pressure on Qualcomm and MediaTek."

The accelerated shift to advanced processes is expected to lead to higher chip prices. As a result, the average selling price (ASP) will rise, and on a revenue basis, advanced processes are expected to account for 86% of the total smartphone SoC market.

Counterpoint Research said, "TSMC continues to lead the foundry market with a share of more than 86%, but its share is expected to edge down due to growth by Samsung Foundry and China's SMIC," and added, "Samsung Foundry is not only increasing the use of its own SoCs but also seeking collaboration with Qualcomm, a strategy that could be a win-win for both companies in the smartphone market."

※ This article has been translated by AI. Share your feedback here.