Samsung is currently investigating the reasons behind Google’s decision to switch its Pixel chip production from Samsung to TSMC. This shift, which reportedly took Samsung by surprise last month, is viewed as a significant blow to Samsung’s foundry business. Since 2021, Google has relied on Samsung to manufacture its Tensor smartphone chips, making this change particularly notable. Recent reports suggest that Samsung is “intensively analyzing” this transition as part of a broader examination of its manufacturing capabilities.
An industry source commented that losing Google’s business highlights the various challenges facing Samsung Foundry. Internally, there are discussions and concerns regarding the implications of this loss. Several factors contributed to Google’s decision to partner with TSMC. According to industry insights, issues such as low yield rates in advanced processes and limited semiconductor design resources played a role.
Additionally, the competition between Google and Samsung in the smartphone market has intensified, prompting Google to seek alternatives. From a consumer perspective, there are valid reasons for this switch as well. Chips manufactured by TSMC are often regarded as more efficient and cooler than those produced by Samsung, leading to better battery life and reduced heating in devices. In contrast, Google’s Tensor-powered Pixel phones have faced criticism for overheating and inconsistent battery performance.
Transitioning production to TSMC may help address these concerns. Furthermore, it appears that Samsung is struggling with the advancement of its next-generation manufacturing processes, particularly the 2nm process intended for the Exynos 2600, expected in the upcoming Galaxy S26 series. While reports indicate that Samsung was shocked by this development, it raises questions about their awareness of the potential switch and the long-term agreement between Google and TSMC, which could extend until the Pixel 14.
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