This move by TSMC completely stunned Samsung Foundry leading it to start an investigation
This is an exciting time for Google Pixel fans. Google will reportedly introduce the Pixel 10 series on August 20th and this will be more than just the next iteration of the Android reference device. The Pixel 10 will be powered by the Tensor G5 application processor (AP) which will be undergoing some major changes, Unlike past Tensor chips that powered previous Pixel lines, this year's G5 will be designed from the ground up by Google.
Previous Tensor chips melded certain Google designs with one of Samsung's Exynos processors used as the foundation of the component. These chips were built by Samsung Foundry, the second-largest foundry on the planet. This year, the Google-designed AP will be built by the world's largest foundry, TSMC, using its second-generation 3nm process node (N3E). According to the Korean financial blog The Bell , Samsung is investigating why it lost the business of manufacturing the Pixel's Tensor APs to TSMC. Yesterday a global strategy meeting was held by Samsung Electronic's Device Solutions Division. As process nodes have dropped under 5nm, the competitive gap between Samsung Foundry and TSMC has widened. One of the major issues is that Samsung Foundry's lower yields results in higher chip prices and questions about whether large-scale orders can be met.
A silicon wafer is checked for defects by robots. | Image credit-Unknown
According to TrendForce, Samsung Foundry's global market share is still declining as it hit 7.7% during the first quarter of this year compared to 8.1% during Q4. During the same quarters, TSMC's market share rose from 67.1% to 67.6%.
Qualcomm redesigned the chip calling it the Snapdragon 8+ Gen 1 and had it built by TSMC. Despite rumors every now and then stating that Qualcomm will return to Samsung Foundry, TSMC has continued to produce the important flagship AP for the San Diego-based fabless chip designer. Samsung Foundry has been busy working on the development of Sammy's in-house Exynos 2600 AP which is earmarked for the Galaxy S26 and Galaxy S26 + flagship models in some markets next year. Built on Samsung Foundry's 2nm process node, the SoC is now undergoing prototype mass production. This is a big test for Samsung Foundry because, with a decent yield and good performance numbers for the chip, Samsung Foundry might be in a position to take business away from TSMC.
If it fails this test, the top brass at Samsung might be forced to consider spinning off or selling Samsung Foundry.
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