Google Moves Tensor G5 Chip Production from Samsung to TSMC

Samsung Electronics won the order for Google's Tensor G4 chip last year, initially raising hopes that it could close the gap with TSMC in the foundry sector. However, recent developments suggest a strategic shift by Google that could impact Samsung's market position.

Currently, Google is entrusting the production of its fourth-generation AP, the Tensor G4, to Samsung Electronics' 4-nanometer foundry. This chip is set to be featured in the Pixel 9 series slated for release in the latter half of this year. The collaboration initially sparked optimism about Samsung's foundry business.

However, insiders revealed on the 3rd that TSMC has recently entered the "tape-out" stage of mass production with Google for the fifth-generation processor, the "Tensor G5," which will be used in the next generation of smartphones, the "Pixel 10" series, scheduled for release next year. Tape-out is the final stage before semiconductor mass production, where the final design blueprint is fed into the production line.

Industry insiders stated, "The 'Tensor G5' in this smartphone will be produced using TSMC's 3-nanometer process, and is expected to significantly outperform the current product (Tensor G4). Google plans to use this to enhance its capabilities in the high-end AI smartphone market."

Previously, the industry only speculated on the possibility of TSMC and Google collaborating on the Tensor G5, but recently the two companies appear to be moving towards full-scale mass production. This development indicates a significant shift in Google's foundry partnerships, with its next-generation AP moving from Samsung to TSMC.

Insiders pointed out that last year, when Samsung Electronics secured the order for Google's Tensor G4, there were hopes that Samsung could continue to close the gap with TSMC in the foundry sector. However, as Google collaborates with TSMC to develop the next-generation AP, Tensor G5, the likelihood of future AP production being assigned to TSMC is increasing.

From Samsung Electronics' perspective, this shift poses the risk of losing a major customer to its competitor, TSMC. It is understood that Samsung Electronics has not secured any significant large-scale customer orders in the foundry sector yet. Consequently, Samsung Electronics saw its market share drop by 1 percentage point to 13% in the first quarter of this year from 14% in the previous quarter. In contrast, TSMC's market share rose by 1 percentage point to 62% during the same period.

Whether Samsung Electronics can attract major customers with its "Gate-All-Around" (GAA) technology, a major advantage of its 3-nanometer process, remains to be seen. Currently, Samsung Electronics is the only foundry using GAA technology at the 3-nanometer level.

As the semiconductor industry continues to evolve, the competition between TSMC and Samsung Electronics remains fierce.