Google’s decision to switch from Samsung’s foundry to TSMC for the Pixel 10’s Tensor G5 chip reportedly caught Samsung off guard. The move marks a significant shift in Google’s chip manufacturing strategy and serves as a critical moment for Samsung’s foundry operations.
For several years, Google relied on Samsung to produce custom Tensor chips for its Pixel smartphones. Despite progress, Google has been transitioning to a fully custom design fabricated by TSMC, which also manufactures chips for Qualcomm, MediaTek, and Apple. The Tensor G5, debuting with the Pixel 10 this year, will be Google’s first chip made by TSMC.
A report from The Bell, cited by industry sources, describes Samsung’s reaction as a “shock” and notes that the company is conducting an internal review to understand the reasons behind Google’s decision. This review, dubbed “the Google incident,” highlights challenges within Samsung Foundry. An insider commented that losing Google underscores Samsung’s complex foundry issues, prompting ongoing internal discussions and concerns.
The report points to Google’s evolving performance and functional requirements, which Samsung’s limited semiconductor design capabilities struggled to meet. Additionally, Samsung’s difficulties in achieving satisfactory yields with its 3nm process have contributed to the shift. Samsung’s 3nm yield reportedly hovers around 50%, significantly lower than TSMC’s approximate 90% yield.
Samsung is also facing broader challenges in attracting customers due to TSMC’s higher manufacturing efficiency. While Google’s Tensor chip will no longer be produced by Samsung, leaks indicate the Pixel 10 may still use a Samsung modem.