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A Major Blow to
In a strategic pivot that sent shockwaves through the tech world, Google has officially decided to switch its custom Tensor chip manufacturing from Samsung to Taiwanâs TSMC. The move, set to begin with the upcoming Pixel 10 series, marks the end of a partnership that began in 2021 and signals deeper issues inside Samsungâs foundry division.
This abrupt change, first reported by Korean outlet The Bell, caught Samsungâs leadership by surprise. The company has since launched an internal investigation to assess the loss, dubbing the event “the Google incident” internally. Emergency meetings are now underway within Samsungâs Device Solutions division as executives scramble to identify what went wrongâand how to prevent further erosion of their client base.
For Samsung, this isn’t just about losing a major client. It’s a wake-up call. Googleâs departure underscores Samsung Foundryâs ongoing struggles, from low chip yields and underwhelming process maturity to a lack of cutting-edge design resources. According to reports, Samsung’s 3nm node delivers only a 50% yield rate, in stark contrast to TSMCâs industry-leading 90%. That discrepancy in efficiency is simply too costly for performance-driven companies like Google.
This isnât the first time Samsung has lost a heavyweight client to TSMC. Apple shifted all its chip production to the Taiwanese giant years ago. Qualcomm, too, has scaled back its reliance on Samsung, allocating only its lower-tier Snapdragon chips to the Korean manufacturer, while flagships are now exclusively made at TSMC.
Googleâs new deal with TSMC reportedly spans five years and includes all Tensor chips through the Pixel 14âeffectively locking Samsung out of the custom Android SoC market until at least 2029. Worse still, this news arrives just as Samsung grapples with delays and technical hurdles in developing its 2nm node, a process critical to the future of its Exynos chips and the Galaxy S26 lineup.
What began as a promising foundry partnership now ends with Samsung facing an existential reckoning in a fiercely competitive semiconductor industry.
What Undercode Say:
The Google-TSMC switch is far more than a business contract lostâit’s a referendum on the state of Samsung’s chipmaking operations.
For years, Samsung has attempted to catch up with TSMCâs dominance in the foundry space. While the Korean tech titan holds immense power in memory and display technology, its performance in advanced logic chip production has consistently lagged behind. This rift is now becoming more visible as top-tier clients opt for TSMC’s tried-and-true reliability.
Yield rateâoften overlooked in consumer tech analysisâis a foundational metric. A 50% yield means that for every two chips manufactured, only one meets quality standards. Compare this with TSMCâs 90%+ efficiency, and it becomes clear why Samsung is bleeding clients. The cost of defective chips adds up quickly, and for companies like Google, who are pushing the envelope with AI-focused SoCs, subpar manufacturing isnât an option.
Googleâs decision also highlights another issue: Samsungâs relative lack of design flexibility. While TSMC has built robust relationships with fabless design firms and provides advanced design ecosystem support, Samsung seems to be trailing in EDA (Electronic Design Automation) tool integration and customization. This weakens its appeal to companies with unique architecture needsâsuch as Googleâs Tensor, which fuses AI/ML tasks into hardware at the silicon level.
This is also a timing disaster for Samsung. The foundryâs future Exynos 2600 chip, intended to be built on the upcoming 2nm node, is already facing delays. Losing Google now means Samsung must rely on its own products or less demanding clients to prove its 2nm viability. If the Exynos 2600 struggles, Samsung risks becoming further marginalized in the global chip war.
Googleâs long-term contract with TSMC is an unmistakable message: companies are investing in consistency, not experimentation. And for now, TSMC is the safer bet.
Samsung must now reckon with the reality that its dual-role modelâas both a product company and a contract foundryâmay be creating internal conflicts of interest that compromise trust with partners. Until Samsung reforms its foundry independence and matches TSMC’s ecosystem support, it may continue to lose groundâeven if it technically catches up on process nodes.
đ Fact Checker Results:
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Samsung’s 3nm process reportedly has a 50% yield rate, while TSMC operates at 90%+ efficiency.
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Google has committed to TSMC for Tensor chips through at least the Pixel 14.
â Samsung has not officially confirmed 2nm delays, though multiple reports point to internal issues.
đ Prediction:
Samsung will likely accelerate reforms within its foundry division in response to Googleâs defection. Expect a strategic revamp aimed at separating its foundry business from other verticals to restore client confidence. Meanwhile, TSMC will solidify its hold over premium chip customers, and unless Samsung can show major breakthroughs in 2nm yield and flexibility by 2026, it may lose further market relevance in high-performance logic chips.
References:
Reported By: timesofindia.indiatimes.com
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