A recent report revealed Samsung’s unexpected reaction to Google’s shift to TSMC foundries for the upcoming Pixel 10 series, internally dubbed the “Google incident.” This move has sparked discussions about Samsung’s internal challenges.
Despite Samsung’s shock, the situation reflects deeper issues with the company’s approach. Google’s decision to switch foundries highlights ongoing struggles tied to Samsung’s semiconductor manufacturing capabilities rather than serving as a sudden crisis.
Since the Pixel 6’s launch with Google’s Tensor chips, the performance and efficiency of these in-house processors have faced criticism compared to Qualcomm-powered rivals. Although Google will continue using Samsung modems for the Pixel 10, the chip manufacturing change points to efforts to improve overall performance.
TSMC’s dominance in semiconductor foundry services is well-established, manufacturing Apple’s A- and M-series chips and Qualcomm’s Snapdragon processors since 2021. Notably, Qualcomm departed from Samsung following the Snapdragon 8 Gen 1, which suffered overheating issues. Transitioning to TSMC’s 4nm process enabled better performance and power efficiency in the Snapdragon 8+ Gen 1.
Samsung has also shown hesitation in fully backing its own Exynos chips. European Galaxy S22 models using Exynos performed worse than Snapdragon counterparts, leading Samsung to partner with Qualcomm for Galaxy-branded Snapdragon variants built by TSMC. Internal foundry yields reportedly hover around 50%, raising concerns about quality and reliability.
This scenario underscores broader issues in Samsung’s corporate culture. Despite leading in Android devices for years, the company has occasionally released uninspired products, such as the Galaxy S25 Edge, while competitors innovate more aggressively. Samsung’s foldables, a category it pioneered, face stiff competition from other brands, including Google and Chinese manufacturers.
While Samsung continues to produce high-quality hardware and later Tensor chips show improvement, Google’s foundry switch could serve as a prompt for Samsung leadership to reassess their strategy and address internal manufacturing shortcomings.