Samsung Electronics may face increased costs in developing its Exynos processors due to a potential royalty rate increase of up to 300% by Arm, which controls over 90% of the application processor (AP) market.

Recent reports indicate that Arm aims to significantly raise its royalties after an unsuccessful court attempt to increase payments from Qualcomm.

Although Qualcomm avoided extra fees for its Oryon technology, Arm’s strategy remains a concern for Samsung, which uses Arm’s technology for its Exynos chips.

This potential fee increase puts additional pressure on Samsung, which serves as both a chip designer and manufacturer.

Despite these hurdles, Samsung is reportedly working on the Exynos 2600 for future smartphones.

Samsung will likely need long-term strategies, such as improving design capabilities or collaborating with other firms, though these solutions will take time and resources.

Recent Samsung developments