Google’s upcoming Pixel 10 smartphone series is already generating significant buzz, not just for anticipated new features, but for a rumored strategic decision that has reportedly sent ripples through the tech industry supply chain. Multiple reports suggest Google is planning a major shift in who manufactures its custom Tensor chips, potentially moving away from long-time partner Samsung Foundry to industry leader TSMC. While Google hasn’t officially confirmed the change, the implications are significant, prompting a reported “shock” and intense internal analysis at Samsung.
This isn’t just a routine vendor switch; according to sources cited in Korean media, Samsung is reportedly surprised by the move and has launched an “intense analysis” into why they lost this crucial contract. The loss of Google is seen by some industry insiders as a case that “shows the complex problems of Samsung Foundry at once,” highlighting broader challenges within Samsung’s semiconductor manufacturing business. There’s speculation that while a change was perhaps anticipated, the potential long-term nature of Google’s purported deal with TSMC – rumored to extend through the Pixel 14 – might be the specific aspect that caught Samsung off guard.
Why is Google Reportedly Making the Switch?
The speculated reasons behind Google’s decision to pivot to TSMC for the Tensor G5 chip are multifaceted and point to challenges Samsung Foundry has reportedly faced:
Manufacturing Efficiency and Yields: A primary concern has been Samsung’s manufacturing yield rates, particularly on advanced process nodes like 3nm. Reports suggest TSMC boasts significantly higher success rates in producing functional chips compared to Samsung, which directly impacts cost and supply reliability.
Performance and Efficiency Issues: Previous Tensor chips, manufactured by Samsung, have been associated with issues like overheating and less-than-stellar battery life in Pixel phones. TSMC’s manufacturing processes are widely regarded as more efficient, leading to cooler-running and more power-friendly chips, which could directly address these user complaints. Companies like Apple have long relied on TSMC for their high-performance, efficient silicon.
Technical Capabilities: Beyond yields, sources suggest Google’s evolving requirements for performance and function in its custom chip designs may be better met by TSMC’s technical capabilities and semiconductor design resources. Google is reportedly pushing towards a more “fully custom” chip design starting with the Tensor G5.
Competitive Dynamics: The increasing competition between Google and Samsung in the broader smartphone market is also cited as a potential underlying factor in Google’s strategic supply chain evaluation.
Implications for Samsung Foundry
Losing a major client like Google for its flagship mobile processor contract underscores potential systemic issues within Samsung’s foundry division. Reports indicate Samsung has been struggling to attract and retain chip customers due to yield disparities compared to TSMC and is also reportedly facing difficulties with its next-generation 2nm process. This reported “Google incident” serves as a significant wake-up call, prompting internal scrutiny of their manufacturing operations and competitive standing.
Despite the shift in the main application processor, leaks suggest the Pixel 10 series may still utilize a modem manufactured by Samsung.
What to Expect from the Pixel 10
The Pixel 10 series is widely expected to debut in August, potentially featuring the standard Pixel 10, Pixel 10 Pro, and Pixel 10 Pro XL models, with a possibility of a Pixel 10 Pro Fold variant. All models are anticipated to house the new Tensor G5 chip. A move to TSMC could signify a noticeable improvement in thermal management and battery performance for these upcoming devices, addressing pain points from previous Pixel generations.
While the rumors await official confirmation from Google, the reported reaction from Samsung highlights the competitive pressures and technical demands at the forefront of modern semiconductor manufacturing. The potential shift marks a pivotal moment for both Google’s Pixel strategy and the global foundry landscape.
