Samsung Analyzing Google’s Shift to TSMC for Tensor G5 and Future Chipsets Amid ‘Complex Problems’ at Korean Foundry

In a significant shift, Google is anticipated to unveil its highly awaited Pixel 10 series later this year, marking the inaugural mass production of its Tensor G5 chipset by TSMC, moving away from Samsung’s previous involvement. This transition involves utilizing TSMC’s advanced second-generation 3nm ‘N3E’ nodes alongside InFO-POP packaging. Unsurprisingly, this news has perturbed Samsung, as reports indicate that the South Korean tech giant is now “intensively analyzing” the reasons behind Google’s decision, potentially overlooking its own ongoing challenges that contributed to the loss of yet another major client.

Samsung’s Technological Advances vs. TSMC’s Reliability

Recent insights from The Bell, shared by the tipster @Jukanlosreve, highlight that Samsung’s Device Solutions division convened a global strategic meeting. A primary agenda item was enhancing its foundry capabilities. Samsung’s semiconductor sector has faced considerable difficulties, and losing Google as a customer represents a significant setback. The reasons for this decision appear clearly documented in various reports.

To solidify its commitment, Google executives visited Taiwan to finalize a substantial agreement with TSMC, ensuring the exclusive production of Tensor chipsets through the Pixel 14 launch, which spans approximately five years. In light of this, Samsung has not yet achieved optimal yields on its 3nm GAA node; however, progress has been reported regarding its 2nm GAA technology, with mass production of the Exynos 2600 prototype commencing earlier this month. Samsung’s strategic goal includes enhancing yields to 50%, gradually improving performance thereafter.

While these advancements may reassure former partners of Samsung’s capacity to compete with TSMC, companies like Google and Qualcomm are likely to scrutinize Samsung’s chipsets before resuming orders, adopting a dual-sourcing strategy in their supply chains. An industry insider has indicated that significant challenges persist within Samsung’s foundry operations, and internal discussions are ongoing about the hurdles they face.

Despite placing Tensor G5 orders with TSMC, Google still depends on Samsung for various components. As previously reported, the Pixel 10 series is set to utilize Exynos 5G modems rather than transitioning to solutions from MediaTek. Looking to the future, there remains potential for Samsung to win back Google by modernizing its lithography technologies. The developments in this situation will be closely watched as the market progresses.

For further insight, visit the original article at The Bell.

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