Samsung Investigates Loss of Google Chip Deal to TSMC

Samsung has been exploring several new strategies to get its struggling semiconductor business back on track. However, it recently faced another setback when Google decided to move the production of the Pixel 10’s Tensor G5 chip to arch-rival and industry leader TSMC. The Korean firm is now closely analyzing why Google made the switch, having used Samsung Foundry for the past several years.

Samsung faces pressure after TSMC wins Google chip deal

Samsung is extremely concerned as its gap with TSMC further widened in Q1 2025 in both revenue and market share. The company eagerly wants to know why it is lagging behind its rival in this space. It is currently waiting for the outcome of the audit conducted by Samsung Global Research’s Management Diagnosis Office earlier this year. Based on the audit report, it aims to make a plan for a comeback in the semiconductor market.

Losing a major client like Google is a wake-up call for Samsung. Korean media reports that Samsung’s Device Solutions (DS) division recently held a global strategy meeting chaired by Vice Chairman Jeon Young-hyun. One of the main topics was how the company can strengthen its position in the foundry business. More importantly, it analyzed Google’s switch to TSMC that surprised Samsung and industry watchers.

“Losing Google is a case that shows the complex problems of Samsung Foundry at once. I understand that there are many discussions and concerns going on internally as well,” a semiconductor industry insider explained. For now, we only know that the Korean firm is taking the Google incident very seriously, but it remains unclear why the company lost the deal.

Samsung Foundry has been producing Google’s Tensor chip for Pixel devices for several years. However, as manufacturing processes evolved, Samsung began struggling with issues like low yield. Its 3nm process has not yet reached the recommended yield for mass production, and even its next-generation 2nm process is facing challenges. This could be one of many reasons why Google moved its chip manufacturing to TSMC for at least the next five years.