Google Pixel 10 to Pixel 14 Tensor chip loss to TSMC sparks Samsung foundry restructure

Google has been rumored to switch from Samsung to TSMC for the making of its Tensor line of chipsets since the days of the affordable Pixel 8, and it finally went and did it for the upcoming Tensor G5 processor in the 2025 Pixel 10.

This means that phones like the Pixel 9 Pro XL that is now 20% off at Amazon will be Google's last with a Samsung-made processor.

The Tensor G5 will reportedly be built on TSMC's 3nm production node that all modern flagship phones are crafted with, while the G6 is expected to land with TSMC's next-gen 2nm process in 2026. In fact, Google allegedly signed a contract with TSMC for the making of all of its Tensor processors, starting with the G5 in the Pixel 10 and continuing until at least the Pixel 14 in 2029.

The loss of Google as a customer has apparently sparked a major soul-searching and business review effort at the Samsung foundry, report Korean industry insiders. Already pressed by the global leader TSMC in terms of production yield for the cutting edge 3nm process, Samsung's foundry is losing market share fast. It has already fallen below 8%, with even unlikely Chinese competitors like SMIC or UMC being a threat now.

While the Pixel 10 is still expected to ship with an Exynos 5G modem tack-on to keep costs in check, the processor in its G5 chipset won't be made at Samsung's Exynos line. Apparently, Samsung struggles not just with 3nm node yields, but also with the intellectual property around its processor instructions set that is not nearly as broad enough as Google would like to craft a custom Tensor chipset that will meet all the features and AI requirements of a modern phone.

The switch to TSMC has reportedly "shocked" Samsung executives, and they have initiated a full business strategy review for the foundry that may result in spinning it off from the mothership and merging the LSI subdivision into other departments.

Another reason for Google giving up on Samsung as a chip foundry is said to be the increased competition between the two companies in the retail phone market. Google now offers a full suite of Pixel phones in every market segment, including a foldable device, and wouldn't like to be overly reliant on one of its main competitors for components, if there are no tangible benefits in terms of hardware specs.

As for TSMC, it can easily accommodate the manufacturing of Tensor processors as Pixel phones are still a niche market in the Android universe, despite Google's growing ambitions.