Google's Shift to TSMC: What It Means for Samsung and the Future of Tensor Chips

In a significant move, Google is distancing itself from Samsung’s influence on its custom-made Tensor chips, opting to shift key components to other suppliers and even making a bold decision to use Taiwan’s TSMC as the primary manufacturer for its next-generation Tensor G5 chip. This move is poised to reshape the balance of power in the chip manufacturing world, signaling a potential shift in how Google approaches its chip development in the coming years.

The decision is particularly interesting given that Samsung has played a crucial role in the development of the Tensor chips from the very beginning. However, with rumors swirling about the upcoming Tensor G5, it appears that Google is ready to chart a new path, leaving Samsung behind. Let’s dive deeper into this shift and what it could mean for both companies.

Google’s Transition: A New Era for Tensor Chips

Recent leaks have uncovered a crucial component list for Google’s upcoming Tensor G5 chip. What stands out most is the significant reduction in Samsung’s involvement in the manufacturing and component sourcing for this chip. For the first time since the inception of the Tensor project, Google is moving away from relying on Samsung, with components previously supplied by the South Korean giant now being sourced from other suppliers.

Samsung’s exit from this critical part of Google’s hardware strategy represents more than just a loss of revenue. It highlights a shift in Google’s approach to its custom chips, with the company seeking more control over its product development. Previously, Google’s Tensor chips were heavily dependent on Samsung’s Exynos modems and other components. Now, the Tensor G5 is set to incorporate parts from a range of suppliers, reducing Samsung’s dominance in the supply chain.

The partnership between Samsung and Google began with the launch of the first Tensor chip in 2021. That chip was actually based on Samsung’s unreleased Exynos 9855, manufactured on the company’s 5nm process. From the very start, Samsung had a major role in bringing the Tensor project to life. However, as time passed, Google increasingly sought to diversify its supply chain and manufacturing processes.

One of the biggest changes with the Tensor G5 is the decision to shift to Taiwan’s TSMC for chip fabrication. TSMC has long been the leader in advanced semiconductor manufacturing, particularly in smaller process nodes, and it is well-known for its superior performance in 3nm technology. This move comes after concerns over Samsung’s yield issues with its own 3nm process. These production challenges could have been a significant factor in Google’s decision to explore alternatives, and TSMC’s proven track record with cutting-edge fabrication processes makes it a strong contender.

Additionally, the leaked component list for the Tensor G5 reveals that the display controller, image signal processor, and various other modules, which were once sourced from Samsung, will now be supplied by a variety of other manufacturers. This suggests that Google is pushing for a more customized approach, leveraging components from a broader array of companies, each specialized in a particular area. This level of control is likely to allow Google to fine-tune the performance and capabilities of the Tensor G5 to a higher degree.

What Undercode Says: Analysis of

This move by Google reflects a broader trend in the tech industry where companies are increasingly looking for autonomy over their hardware development. By distancing itself from Samsung, Google is asserting more control over its chip designs and the manufacturing process. The decision to turn to TSMC for the Tensor G5’s production is particularly significant. Not only does this suggest that Google is focused on ensuring the highest possible quality for its chips, but it also highlights the importance of Taiwan-based TSMC as the leading player in the global semiconductor market.

Samsung’s ongoing struggles with its 3nm process could be seen as a catalyst for Google’s move. While Samsung is still a dominant force in the chip manufacturing industry, its inability to deliver consistent yields with advanced nodes has raised concerns among companies like Google, which depend on cutting-edge technology to maintain their competitive edge. TSMC, on the other hand, has proven time and again that it is capable of meeting the rigorous demands of top-tier technology companies.

Beyond production concerns, Google’s decision to spread its supplier base also reflects a desire to break free from the limitations imposed by Samsung’s off-the-shelf components. With more flexibility in sourcing key parts, Google can likely optimize its chips to meet the specific needs of its devices, whether that’s improving AI performance, enhancing camera capabilities, or refining power efficiency. This approach could allow the Tensor G5 to compete more effectively with chips from rivals like Apple and Qualcomm, which have their own custom-designed silicon.

In a sense, this is Google making a statement that it is ready to take its chip development to the next level. The Tensor G5 is expected to be a leap forward in terms of performance and capabilities, and by diversifying its supply chain and manufacturing processes, Google is setting the stage for a more advanced and sophisticated chip in the market.

Fact Checker Results

Manufacturing Shift: It is confirmed that the Tensor G5 chip will be manufactured by TSMC using its 3nm process, not by Samsung.
Component Sourcing: Many components previously supplied by Samsung will now be sourced from other suppliers, reducing Samsung’s role in Google’s Tensor project.
Industry Context: TSMC is currently the leader in advanced semiconductor manufacturing, and Google’s decision reflects broader industry trends moving towards TSMC for cutting-edge processes.

References:

Reported By: https://www.sammobile.com/news/googles-new-tensor-g5-chip-ditches-more-samsung-components/
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