Samsung is reportedly undergoing intensive analysis to understand why Google has decided to switch production of its Tensor G5 chipset and future chipsets to TSMC. This change marks a significant shift as Google’s Pixel 10 series, launching later this year, will be the first to feature a chipset mass-produced by TSMC instead of Samsung. 
Google has chosen to leverage TSMC’s advanced second-generation 3nm ‘N3E’ node and InFO-POP packaging for the new chip, which has sparked a lot of internal discussions at Samsung.
Samsung’s Device Solutions division is said to have held a global strategic meeting, with a focus on strengthening its foundry capabilities. The company has been facing challenges in its semiconductor business, and losing Google as a customer has raised alarms. Samsung is aware that its own setbacks, including issues with the 3nm GAA node, are the key reasons behind the loss. In contrast, TSMC’s ability to meet Google’s needs with superior yields has been a deciding factor in the switch.
According to sources, Google executives recently visited Taiwan to finalize a deal with TSMC to exclusively manufacture Tensor chipsets through to the Pixel 14 launch, which is expected to span up to five years. Samsung, despite making progress with its 2nm GAA technology, has struggled to achieve high yields with its 3nm node, and this gap has pushed companies like Google and Qualcomm toward TSMC. Although Samsung has started mass production of the Exynos 2600 prototype, the company still faces an uphill battle to catch up to TSMC’s success.
Industry insiders suggest that Samsung’s foundry sector is facing ‘complex problems,’ which are being thoroughly discussed within the company. Google may have shifted its Tensor G5 orders to TSMC, but it continues to rely on Samsung for other components, such as the Exynos 5G modems for the Pixel 10 series. While Samsung works to improve its yields and lithography, it remains to be seen whether it can win back Google’s business in the future, as time will tell how the semiconductor landscape evolves.