A recent report revealed Samsung was reportedly “shocked” by Google’s decision to move the Pixel 10 series’ Tensor G5 chip production to TSMC. Internally dubbed the “Google incident,” this shift has sparked discussion about Samsung’s foundry and broader corporate challenges.
Samsung’s surprise underscores deeper issues within its culture and manufacturing confidence. Google’s Pixel processors, starting with the Tensor chip in the Pixel 6, have faced criticism over performance and efficiency, especially compared to Qualcomm-powered rivals. While Google still uses Samsung modems for the Pixel 10, the move to TSMC for chip fabrication signals a search for more reliable performance.
TSMC’s dominance in semiconductor manufacturing is well established, producing chips for industry leaders like Apple and Qualcomm. Samsung has struggled with foundry yields and quality issues, exemplified by Qualcomm switching from Samsung to TSMC after the Snapdragon 8 Gen 1’s high power consumption and heat output. Subsequent TSMC-produced Snapdragon chips have shown significant improvements.
Samsung’s own smartphone division often prefers Qualcomm’s TSMC-built processors over its in-house Exynos chips, which have faced performance setbacks. Even with ongoing rumors about expanding Exynos use, Samsung’s foundries reportedly only achieve about 50% yield rates, raising doubts about their reliability.
This situation reflects larger challenges at Samsung, which has shown hesitation to fully commit to innovative developments despite pioneering foldable devices. While the company released the Galaxy S25 Edge recently, reviews were mixed, and competitors have gained ground in design and innovation.
Although Samsung continues to deliver strong hardware and improved Tensor chips, Google’s decision to switch foundries should serve as a prompt for Samsung leadership to reconsider its strategies and internal operations.