A retreat from cutting-edge toward something more pragmatic
In the quiet arithmetic of manufacturing economics, Samsung has chosen pragmatism over prestige — stepping back from the sophisticated Fan-Out Wafer-Level Packaging that elevated its Exynos chips since 2400, and turning instead toward a simpler Side-by-Side design for the Exynos 2700. The decision, which will shape the processors inside the Galaxy S27 and S27+ arriving in early 2027, reflects a truth as old as industry itself: that the most technically impressive path is not always the one a company can afford to walk. Heat Pass Block technology will attempt to soften the thermal trade-off, though how well it succeeds remains one of the more consequential open questions in mobile silicon heading into next year.
- Samsung is quietly retreating from one of its most ambitious chip-packaging technologies, acknowledging that FOWLP's manufacturing complexity made it too costly to sustain at scale.
- The thermal advantages that made FOWLP valuable — better heat dissipation through vertical stacking — will be surrendered in favor of a flatter, side-by-side arrangement that is cheaper and faster to produce.
- Heat Pass Block technology enters as a partial remedy, tasked with managing thermals in a design that is fundamentally less equipped to handle them than its predecessor.
- The Exynos 2700 now carries a dual burden: proving that the cost savings were worth the engineering concession, and doing so inside flagship Galaxy S27 devices where performance expectations run high.
Samsung is preparing a meaningful departure in how it builds its next flagship chip. The Exynos 2700, set to power the Galaxy S27 and S27+ in early 2027, will leave behind Fan-Out Wafer-Level Packaging — the sophisticated technology that has defined the company's high-end processors since the Exynos 2400 — in favor of a simpler approach called Side-by-Side packaging.
FOWLP was a genuine engineering achievement. By stacking components vertically and spreading them across the wafer surface, it improved heat dissipation and delivered more efficient thermal performance. But the process was expensive and difficult to scale, and Samsung ultimately concluded that the thermal gains did not justify the manufacturing burden. The economics simply didn't hold.
The Side-by-Side design places the application processor and DRAM horizontally next to each other rather than stacking them — a more conventional, cost-effective arrangement. It is a deliberate step toward the pragmatic rather than the cutting-edge.
To compensate for the thermal disadvantage, Samsung plans to integrate its Heat Pass Block technology into the Exynos 2700, a system designed to redirect heat away from sensitive components. It won't fully replicate what FOWLP provided, but it may narrow the gap.
The Exynos 2700 will ultimately serve as a test of whether Samsung's calculation was sound — whether consumers feel the difference, and whether saving on manufacturing costs was worth trading away a thermal edge that once set its chips apart.
Samsung is preparing to make a significant shift in how it manufactures its next flagship processor. The Exynos 2700, expected to power the Galaxy S27 and Galaxy S27+ when they arrive in early 2027, will abandon the Fan-Out Wafer-Level Packaging technology that has defined the company's high-end chips since the Exynos 2400. According to industry sources, Samsung is moving toward a simpler packaging design called Side-by-Side, a choice that prioritizes manufacturing economics over the thermal advantages the older approach provided.
FOWLP represented a significant engineering achievement. By stacking components vertically and distributing them across the wafer surface rather than confining them to a central die, the technology improved heat dissipation and allowed for more efficient thermal performance. For Samsung's flagship chips, this mattered. But the manufacturing process came with a steep cost. The complexity of FOWLP production made it expensive to scale, and despite its performance benefits, the approach proved less profitable than Samsung needed it to be. The company has been quietly reassessing whether the thermal gains justified the manufacturing burden.
The new Side-by-Side architecture represents a different trade-off. Rather than stacking the application processor and DRAM vertically, Samsung will position them horizontally next to each other on the substrate. This is a simpler, more conventional approach that should be cheaper and faster to manufacture. It's a retreat from cutting-edge packaging toward something more pragmatic—a recognition that not every performance gain is worth the cost it demands.
Samsung is not abandoning thermal management entirely. The company plans to incorporate its Heat Pass Block technology into the Exynos 2700, a system designed to move heat away from critical components more efficiently. HPB won't replicate what FOWLP achieved, but it may help offset some of the thermal disadvantages of the simpler Side-by-Side design. Whether it will be enough remains an open question.
The shift reflects a broader tension in chip design: the pull between what's technically possible and what's economically sensible. FOWLP was impressive engineering, but it was also a luxury. As competition intensifies and margins tighten, even Samsung—a company with the resources to pursue expensive manufacturing innovations—is choosing to simplify. The Exynos 2700 will be a test of whether that calculation was correct, and whether consumers will notice the difference when the Galaxy S27 arrives next year.
Notable Quotes
FOWLP helped improve thermal performance but was less profitable due to complex and costly manufacturing— Industry sources cited in report
The Hearth Conversation Another angle on the story
Why would Samsung abandon a technology that actually improved thermal performance? That seems backward.
It's not about capability—FOWLP worked. It's about cost. The manufacturing process was so complex that Samsung couldn't make money on it at scale, even though the chips performed better.
So they're choosing profit over performance?
Not exactly. They're choosing a different kind of performance—one that's profitable enough to sustain the business. They're adding Heat Pass Block technology to manage thermals differently, not abandoning the goal.
Will phones actually run hotter as a result?
That's the real question nobody can answer yet. We won't know until the S27 launches and people test it. The Side-by-Side design is simpler, but whether it's good enough depends on how well HPB compensates.
This feels like a cost-cutting move dressed up as engineering progress.
It is cost-cutting. But that's not inherently bad. Sometimes the smarter engineering is knowing when to stop chasing marginal gains and build something you can actually manufacture profitably.