Google Ditches Samsung: Tensor G5 Chip Heads to TSMC

Google’s Move to TSMC for Pixel 10’s Tensor G5 Chip: A Wake-Up Call for Samsung

In a surprising turn of events, Google has decided to shift the manufacturing of its upcoming Tensor G5 chip for the Pixel 10 series from Samsung Foundry to TSMC (Taiwan Semiconductor Manufacturing Company). The decision marks a significant departure from Google’s previous collaborations and has reportedly sent shockwaves through Samsung’s internal teams. More than just a business decision, this move is being seen as a clear signal of dissatisfaction with Samsung’s chip production capabilities—and a major pivot in Google’s hardware strategy.

Background: Google’s Long Partnership with Samsung

For the past several years, Google has relied on Samsung to manufacture its custom Tensor chips, starting from the original Tensor chip launched in the Pixel 6 series. These chipsets were co-designed by Google but built on Samsung’s fabrication process and often borrowed architecture elements from Samsung’s Exynos platform.

While this collaboration brought Google a step closer to achieving full control over its mobile hardware ecosystem, it came with complications. Users and reviewers consistently pointed out performance issues, heating concerns, and relatively lower efficiency in comparison to competing chipsets from Qualcomm and Apple.

Despite incremental improvements from Tensor G1 to G4, the limitations of Samsung’s foundry process—especially in newer nodes like 3nm—became increasingly apparent.

The Switch to TSMC: A Strategic Shift

According to a recent report by The Bell, Google’s decision to move Tensor G5 chip production to TSMC caught Samsung off guard. The report claims the decision was a “shock” for Samsung executives and is now being internally referred to as “the Google incident.”

TSMC, the world’s largest and most advanced chip foundry, is already a trusted manufacturing partner for industry giants like Apple, Qualcomm, and MediaTek. Its reputation for high yields and process efficiency likely played a critical role in Google’s switch.

Notably, the Tensor G5 will be Google’s first fully custom-designed chip manufactured by TSMC, indicating not only a change in foundry but also a deeper commitment to custom silicon. This could mark the beginning of a new phase in Google’s hardware ambitions, bringing it closer to Apple’s vertically integrated approach.

Why the Switch Happened

Several reasons appear to have contributed to Google’s move away from Samsung:

Performance Demands

Reports suggest that Google’s expectations for chip performance and features have evolved. As the company integrates more advanced AI and machine learning features into its devices, especially with the rise of on-device AI, it needs a chip that can deliver both power and efficiency. Samsung’s foundry limitations may not have been sufficient to meet these growing demands.

Design Limitations

Samsung is not just a manufacturer; it also provides semi-custom design IPs (intellectual properties) for companies like Google. However, the report suggests that Samsung’s lack of semiconductor design assets limited Google’s ability to push its chip innovation further. In contrast, working with TSMC allows Google to utilize a more diverse set of tools and partners in the custom chip design process.

Yield Issues

One of the most pressing technical concerns has been Samsung’s low yield rates, particularly on its 3nm process node. Yield refers to the percentage of functional chips produced per wafer. Reports indicate that Samsung’s yield is hovering around 50%, while TSMC boasts a far superior 90% yield. Lower yields not only increase production costs but also impact the consistency and reliability of the final product.

Samsung’s Internal Response

The report reveals that Samsung has launched an internal investigation to understand the causes behind Google’s departure. The move has reportedly led to serious discussions within Samsung Foundry, with one insider stating, “Losing Google shows the complex issues Samsung Foundry is facing all at once.”

This introspection is likely driven by the fact that Google was not only a major customer but also a prominent tech brand that brought prestige and credibility to Samsung’s chipmaking division. Losing such a client to TSMC may indicate deeper issues that Samsung must urgently address if it wants to compete in the increasingly competitive chip manufacturing market.

Not an Isolated Case

Google’s switch to TSMC is not an isolated incident. Other reports suggest that Samsung is struggling to attract and retain customers for its chip business. As TSMC continues to dominate the foundry market with its high-performance, high-yield solutions, Samsung is finding it difficult to keep up, especially with newer technologies like 3nm.

In the broader industry context, Samsung’s loss of Google reflects a growing trend of customers opting for TSMC due to its proven reliability and cutting-edge processes.

What About the Modem?

Interestingly, while Google is moving the Tensor G5 chip to TSMC, it will still rely on Samsung’s Exynos modem for cellular connectivity in the Pixel 10 series. This suggests a partial continuation of the Samsung partnership, possibly due to time constraints, compatibility reasons, or cost considerations. However, it also highlights that Google may eventually seek to move away from Samsung entirely as it continues to mature its custom silicon program.

Implications for the Pixel 10

For consumers, the switch to TSMC could mean a significantly better experience with the Pixel 10. Here’s what users can expect:

  • Improved Performance: The Tensor G5, built on TSMC’s superior fabrication process, could deliver higher clock speeds, better AI processing, and enhanced graphics performance.
  • Better Thermal Management: One of the major complaints about previous Pixels was overheating. TSMC’s more efficient chip designs are likely to reduce thermal throttling.
  • Longer Battery Life: Greater power efficiency should translate into better battery performance, a key area of improvement for the Pixel lineup.

What’s Next for Google and Samsung?

For Google, this move aligns with its vision of building more vertically integrated and tightly controlled hardware. As AI becomes more central to its products, having custom chips built to its exact specifications by a world-class foundry is a smart and necessary move.

For Samsung, this should be a serious wake-up call. If it wants to compete with TSMC in the long run, it must invest not just in advanced fabrication technology but also in improving its yields, reliability, and customer support. The loss of Google might be just the beginning if systemic issues aren’t addressed.

Conclusion

Google’s switch from Samsung to TSMC for its upcoming Tensor G5 chip is more than just a manufacturing change—it’s a statement. It reflects Google’s growing ambitions in hardware, a demand for better performance and efficiency, and a strategic move towards full control over its silicon design. For Samsung, this unexpected blow might serve as the push it needs to revisit and revamp its foundry business.

As the Pixel 10 series prepares for launch, all eyes will be on the performance of the Tensor G5—and whether Google’s gamble on TSMC pays off. If it does, it may set a new standard for future Pixels—and perhaps send more clients knocking on TSMC’s door.