A recent report revealed Samsung’s surprise at Google’s decision to switch from Samsung foundries to TSMC for the upcoming Pixel 10 series chips, internally dubbed “the Google incident.” This situation underscores broader issues within Samsung’s corporate culture and semiconductor segment.
Since the Pixel 6, Google’s in-house Tensor chips, produced by Samsung, have faced criticism for underperforming against Qualcomm counterparts, particularly in raw power and efficiency. Google’s ongoing use of Samsung modems continues despite these challenges.
TSMC’s reputation as a trusted semiconductor manufacturer is well-established, with Apple’s A-series and M-series chips exclusively produced by them. Qualcomm, too, shifted from Samsung to TSMC after the Snapdragon 8 Gen 1’s heat management issues. The mid-cycle update to the 8+ Gen 1 on TSMC’s 4nm process improved performance and power efficiency significantly, driving Qualcomm’s continued reliance on TSMC.
Samsung itself has often bypassed its own Exynos chips in favor of Qualcomm’s Snapdragon processors made by TSMC, a move that has sometimes embarrassed its Exynos division. Despite rumors and efforts to champion Exynos chips globally, including potential inclusion in upcoming foldables, Samsung’s foundries currently produce at about 50% yield, signaling production challenges.
Beyond foundry issues, Samsung’s broader approach to the smartphone market reveals inconsistencies. The company has released uninspired flagship devices like the Galaxy S25 Edge despite attempts to boost innovation, even requiring employees to work weekends to improve output. Samsung is only recently catching up in foldable smartphone design and faces stiff competition from rivals like Google, OnePlus, and several Chinese manufacturers.
While Samsung continues to produce strong hardware and later Tensor chipsets have improved, the reported surprise over Google’s foundry switch highlights the need for Samsung leadership to reassess their strategies and internal coordination.