A recent report revealed Samsung was taken aback by Google’s decision to switch to TSMC for manufacturing the Pixel 10’s Tensor G5 chipset. Internally dubbed the “Google incident,” this move highlights ongoing issues within Samsung’s culture and semiconductor strategy.
Google’s Tensor processors, used since the Pixel 6 series, have faced criticism over performance and efficiency, particularly compared to Qualcomm-powered rivals. While Google continues to use Samsung modems for the Pixel 10, the transition to TSMC chip production signals a quest for improved quality.
TSMC’s reputation for producing efficient and high-performing chips is well established. Apple’s A-series and M-series chips, as well as Qualcomm’s flagship Snapdragon SoCs since 2021, have been manufactured by TSMC. Qualcomm notably moved from Samsung to TSMC after the Snapdragon 8 Gen 1, produced by Samsung, suffered from overheating. The improved Snapdragon 8+ Gen 1, built by TSMC, demonstrated better performance and power efficiency.
Samsung itself frequently opts out of using its Exynos chips in favor of Qualcomm’s Snapdragon chips made by TSMC, even leading to criticism of Exynos models in devices like the Galaxy S22. For the Galaxy S23 and future models, Samsung has partnered closely with Qualcomm on Snapdragon variants built at TSMC.
Although Samsung has discussed developing unique Exynos chips and there are rumors of wider Exynos usage in future devices, its foundries currently face yield challenges around 50%, raising doubts about their competitiveness. This situation reflects larger internal struggles within Samsung beyond just foundry capabilities.
Samsung’s position as a dominant Android manufacturer has at times been undermined by uninspired product launches and slow innovation, particularly in foldable phones where competitors have gained design advantages. Recent devices like the Galaxy S25 Edge received lukewarm reviews despite the company’s efforts to maintain market lead.
While Samsung continues to produce strong hardware and mid-generation Tensor chips have improved, Google’s shift to TSMC underscores a need for Samsung to reassess its strategies and internal management.