In a surprising turn of events, a new report indicates that Google has decided to transition from Samsung's foundry to TSMC for the production of its upcoming Tensor G5 chip, which will debut with the Pixel 10 series. This move has reportedly left Samsung in a state of shock and serves as a critical wake-up call for the company’s foundry operations.
For several years, Google has relied on Samsung to manufacture custom Tensor chipsets for its Pixel devices. Although this partnership has seen some improvements over time, the relationship has been rocky. Google is now steering towards a fully customized chip design produced by TSMC, a shift that will be highlighted later this year with the launch of the Pixel 10 series, featuring the Tensor G5—marking the first Google chip produced by TSMC.
The transition to TSMC reportedly came as a significant shock to Samsung. According to a report from The Bell, Samsung is currently conducting an internal investigation to understand the implications of Google’s shift to TSMC, which has been labeled as “the Google incident.” This analysis is viewed as a critical wake-up call for Samsung’s foundry capabilities.
An industry insider has commented that “losing Google is a case that shows the complex problems of Samsung Foundry at once.” There are numerous discussions and concerns taking place internally at Samsung regarding this development.
The report highlights that Google’s expectations regarding performance and functionality have diversified, prompting a reevaluation of their partnership with Samsung. A significant factor in this decision appears to be Samsung’s “lack of semiconductor design assets.” Additionally, Samsung has been grappling with ongoing issues related to yield, particularly with its 3nm process, which has become a growing concern for the tech giant.
Furthermore, Google is not the only company moving away from Samsung for chip production. A report from late May indicated that Samsung has been struggling to attract customers for its chips, largely due to TSMC’s superior yield rates. While Samsung’s yield for its 3nm process is reportedly around 50%, TSMC boasts an impressive yield of about 90%.
Despite Google’s decision to forgo Samsung for its Tensor chipset, the upcoming Pixel 10 is still expected to incorporate a Samsung modem, according to recent leaks. This suggests that while Google is shifting its chipset production, it will continue to utilize certain components from Samsung.
In conclusion, Google's transition to TSMC for the Tensor G5 chip signifies a pivotal moment in the relationship between Google and Samsung. This decision not only underscores the evolving landscape of semiconductor manufacturing but also highlights the growing challenges faced by Samsung's foundry operations in light of increasing competition from TSMC.
