Samsung on a cost-cutting path: Galaxy S27 smartphones may switch to third-party chips

South Korean tech giant Samsung is expected to implement unexpected strategic changes in its upcoming Galaxy S27 flagship series. To reduce production costs and maintain high profitability, the company is considering purchasing critical smartphone components from third-party suppliers. This move is particularly significant as component prices are rising sharply against the backdrop of AI technology development. This is reported by Ixbt.com reports .

According to ZDNet Korea, Samsung plans to phase out its proprietary DDI (Display Driver IC) controllers in some Galaxy S27 series models. These chips are responsible for managing image transmission, brightness, and color accuracy on OLED and LCD panels, directly impacting the device's energy efficiency. Previously, the company sourced these parts from its own Samsung System LSI division.

Cost issues and the impact of AI

Experts believe this decision is driven by the global price hike of memory chips (DRAM, HBM, and NAND). Due to AI, demand for these components is increasing, putting financial pressure on smartphone manufacturers. To optimize costs, Samsung may focus primarily on the Galaxy S27 and Galaxy S27+ models.

It is assumed that the more affordable models in the series will be equipped with third-party controllers. Meanwhile, the premium Galaxy S27 Pro and Galaxy S27 Ultra models are expected to retain high-tech chips produced in-house by Samsung. This could further widen the technical gap between the flagships.

Potential partners and quality control

Samsung is currently reviewing proposals from several potential suppliers. The list of candidates includes:

• Anapass (South Korea)
• DB Global Chip (South Korea)
• Wonik D2I (South Korea)
• Novatek (Taiwan)

Company specialists plan to test these manufacturers' products for quality, performance, and energy efficiency. A final decision will be made after analyzing these metrics. It is worth noting that DDI chips play a crucial role in saving battery life, so Samsung will strive to avoid damaging its reputation by using low-quality parts.

Previously, Samsung had considered purchasing OLED panels from China's BOE for its upcoming flagships. However, the idea was later abandoned as it did not meet quality requirements. Now, the company is attempting to maintain balance by sourcing the control microchips externally rather than the display itself. Such changes could help keep the final product price affordable for consumers.