Advanced processing chips represent the pinnacle of current semiconductor technology, bringing superior performance and energy saving. According to market research company Counterpoint Research, the market share of processing chips (SoC) from 5nm and below accounted for 50% in the smartphone market in 2025.
This shift reflects the industry's transformation from mature manufacturing technologies to more advanced technologies to bring better performance, more energy saving, improved AI capabilities, superior gaming experience and richer photography and filming experiences.
Samsung is the first company to deploy the Exynos 2600 SoC based on its own 2nm technology with the Galaxy S26. Apple, Qualcomm and MediaTek are also expected to apply 2nm manufacturing technology, supported by TSMC, which is starting mass production this year.
It is expected that the number of SoC chips for smartphones shipped in 2026 will decrease sharply by two digits compared to the previous year due to memory limitations. However, the market share of SoC chips based on advanced manufacturing technology is expected to increase by nearly 60% by 2026, thanks to the continued widespread application in both the high-end and mid-range smartphone segments. Currently, 3nm technology accounts for nearly half of the total number of SoC chips manufactured using advanced technology.
Commenting on the transition to advanced chip manufacturing technology, senior analyst Shivani Parashar said: "Samsung is emerging as one of the pioneers in applying 2nm chip manufacturing technology, similar to how Apple once led the transition to 3nm technology. At the same time, Samsung's gradual increase in the use of proprietary chips in mid-range smartphones is increasing competitive pressure on Qualcomm and MediaTek.
It is expected that the shipment volume of leading SoC chips (3nm and 2nm) will increase by 18% compared to the previous year in 2026, accounting for nearly one-third of the number of smartphones sold in 2026. However, higher wafer N2 production costs will increase the cost of high-end SoCs. This could push the average selling price of smartphones higher in 2026.
“Chip production costs are increasing and design complexity is limiting widespread conversion and only allowing advanced chip manufacturing technologies to be applied to high-end smartphones, while mid-range smartphones are starting to use these technologies.
From a manufacturing perspective, TSMC continues to dominate the chip outsourcing market with more than 86% market share. However, their market share is expected to slightly decrease due to the increase in operations of Samsung Foundry and SMIC. In addition to expanding the use of internal SoCs, Samsung Foundry is seeking to cooperate with Qualcomm, which could create mutually beneficial benefits in the smartphone market," Counterpoint Research said.
