The 'Google incident' that has left Samsung 'shocked'
Google
's decision to move production of its
Tensor G5 processor
from
Samsung
to
TSMC
for the upcoming
Pixel 10 series
has reportedly sent shockwaves through Samsung's executive ranks, prompting an internal investigation into the foundry division's mounting problems.
The switch came as a "shock" to Samsung leadership last month, according to Korean publication The Bell, with the company now "intensively analyzing" what industry insiders are calling "the
Google incident
." Samsung's Device Solutions division has launched emergency strategy meetings to examine how it lost one of its last major foundry customers.
Wake-up call exposes Samsung's foundry struggles
"Losing Google is a case that shows the complex problems of
Samsung Foundry
at once," an industry source told The Bell. "There are many discussions and concerns going on internally as well."
by Taboola
by Taboola
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The loss represents more than just a significant contract for Samsung—it highlights the foundry's declining competitiveness against Taiwan's TSMC. Google had relied on Samsung to manufacture its custom Tensor chips since 2021, starting with the Pixel 6 series, but persistent yield issues and design limitations drove the search giant to seek alternatives.
Samsung's 3nm process reportedly achieves only 50% yield rates, far below TSMC's 90% efficiency. The Korean company also lacks the semiconductor design assets that Google's "diversifying" performance requirements demand, according to the report.
Pattern of customer defections continues for Samsung's foundry business
Google joins a growing list of major clients abandoning Samsung's foundries for TSMC's superior manufacturing capabilities. Apple made the switch years ago, while Qualcomm now reserves Samsung only for lower-tier processors, moving flagship
Snapdragon
production to TSMC.
The timing compounds Samsung's challenges as it struggles with its next-generation 2nm process development. The company is reportedly having difficulty proceeding as planned with the advanced node, which is crucial for its upcoming
Exynos 2600
processor expected in the Galaxy S26 series.
Google's five-year commitment to TSMC covers Tensor chips through the Pixel 14, effectively shutting Samsung out of smartphone processor manufacturing for one of Android's most prominent players until at least 2029.
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