Key Takeaways
1. Google is shifting its chip production from Samsung to TSMC, starting with the Tensor G5 processor for the 2025 Pixel 10.
2. The Tensor G5 will utilize TSMC’s advanced 3nm production technology, with plans for the G6 to use 2nm technology in 2026.
3. Samsung’s foundry is losing market share and facing challenges due to Google’s departure and competition from other manufacturers like SMIC and UMC.
4. Google’s decision may stem from the need to reduce dependency on a competitor while enhancing its AI and hardware capabilities in Pixel devices.
5. Samsung executives are reportedly shocked by the loss of Google, prompting a review of their foundry strategy, which could lead to significant changes in their business structure.
Google has been buzzing about changing its chip production from Samsung to TSMC for quite some time, especially since the launch of the budget-friendly Pixel 8. This shift is confirmed for the upcoming Tensor G5 processor that will be featured in the 2025 Pixel 10.
A New Era for Google Phones
This transition means that devices like the Pixel 9 Pro XL, which is currently 20% off on Amazon, will be among the last ones to utilize a processor made by Samsung. The Tensor G5 is said to be manufactured using TSMC’s advanced 3nm production technology, which is what most modern flagship smartphones are made with. Looking ahead, the G6 is anticipated to debut with TSMC’s state-of-the-art 2nm process in 2026. Reports suggest Google has inked a deal with TSMC to produce all its Tensor processors, starting from the G5 in the Pixel 10 and extending all the way to at least the Pixel 14 by 2029.
Samsung’s Reaction to Losing Google
According to insiders in the Korean industry, the loss of Google as a client has triggered a significant introspection and review process at Samsung’s foundry. Already challenged by TSMC’s dominance in the 3nm production yield, Samsung’s foundry is quickly losing ground in the market, dropping below 8% share, with even unexpected Chinese rivals like SMIC or UMC posing a risk now.
The Pixel 10 is still expected to come with an Exynos 5G modem to keep expenses down, but the G5 processor won’t be a product of Samsung’s Exynos division. Reports indicate that Samsung is not only having difficulties with 3nm yield but also with the intellectual property associated with its processor instruction set, which isn’t diverse enough for Google’s desire to create a customized Tensor chipset that fulfills all the features and AI expectations for a contemporary smartphone.
Implications for the Future
The news of Google’s shift to TSMC has reportedly “shocked” executives at Samsung, prompting them to undertake a comprehensive review of their foundry business strategy. This could lead to a potential spin-off from the parent company, merging the LSI division into other sectors.
Another factor in Google’s decision to move away from Samsung as a chip manufacturer may be the escalating competition between the two brands in the smartphone market. Google now provides a complete range of Pixel devices across all market segments, including a foldable phone, and wants to avoid being too dependent on a key competitor for essential components unless there are clear advantages in terms of hardware specifications.
Regarding TSMC, the company can easily handle the production of Tensor processors since Pixel smartphones remain a niche within the Android ecosystem, even as Google’s ambitions continue to grow.
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