Google’s recent move has caught Samsung Foundry off guard, leading to an internal investigation. For Google Pixel enthusiasts, this is an exciting time. The Pixel 10 series is set to launch on August 20th, and it will offer much more than just a standard upgrade to the Android reference device. The new Pixel 10 will be powered by the Tensor G5 application processor (AP), which brings significant changes.
Unlike previous Tensor chips, which were designed by Google in collaboration with Samsung’s Exynos processors, the Tensor G5 will be built entirely by Google from scratch.
For past Pixel models, Tensor chips combined Google’s own designs with Samsung Exynos cores, and Samsung Foundry handled the manufacturing. However, this year, Google has shifted its manufacturing to TSMC, the world’s largest semiconductor foundry. The Tensor G5 will be built using TSMC’s advanced 3nm N3E process node, marking a major shift from Samsung’s production capabilities. Samsung is now investigating how it lost this crucial contract, especially after facing issues with its foundry.
According to reports, the competitive gap between Samsung Foundry and TSMC has grown as process nodes shrunk under 5nm. Samsung has struggled with lower yields, resulting in higher chip prices and concerns about fulfilling large orders. In the first quarter of this year, Samsung Foundry’s market share dipped to 7.7% from 8.1% in Q4, while TSMC’s market share rose slightly from 67.1% to 67.6%.
This decision by Google is surprising, given the ongoing issues with Samsung’s foundry. For years, reports have highlighted Samsung Foundry’s struggles with yield rates. In 2021, Qualcomm moved its Snapdragon 8 Gen 1 production from Samsung Foundry to TSMC after yield rates reportedly dropped as low as 35%. Qualcomm later redesigned the chip and had TSMC produce the Snapdragon 8+ Gen 1. Despite some rumors about Qualcomm returning to Samsung, TSMC has continued to manufacture its key AP chips.
Meanwhile, Samsung Foundry is focused on its upcoming Exynos 2600 AP, which is expected to power the Galaxy S26 and S26+ flagship phones. Built on Samsung’s 2nm process node, the Exynos 2600 is currently in prototype mass production. This development is crucial for Samsung, as it could help the foundry reclaim market share from TSMC. However, if the Exynos 2600 fails to meet performance expectations, Samsung may be forced to reconsider the future of its foundry division.