Google intends to abandon Samsung in manufacturing Tensor processors

Google intends to abandon Samsung in manufacturing Tensor processors

Google is reportedly planning to use TSMC instead of Samsung to manufacture the Tensor G5 processors it will use in its Pixel 10 series next year, according to a new report.

According to a report from Business Korea , the Tensor G5 processors will be manufactured using TSMC's advanced 3nm manufacturing technology. The report also indicated that Google will collaborate with TSMC again to manufacture the Tensor G6 processors, which will be produced using 2nm technology for the Pixel 11 phones. 

The move comes after earlier rumors that Google was looking to part ways with Samsung Foundry, Samsung's chip manufacturing arm, due to "low" and "unstable" productivity.

Samsung's 3nm chip yield is reportedly only 20%, while TSMC's yield is 80%, which is a huge difference.

In the chip industry, yield rate refers to the percentage of good or healthy chips produced compared to the total number of chips manufactured on a single silicon wafer, and is a measure of the quality and efficiency of the manufacturing process.

During the chip manufacturing process, some defects may appear due to various factors such as the imprecision of the equipment, materials used, or the complexity of the manufacturing process, and these defects lead to unusable chips. Therefore, the higher the production yield, the more healthy chips can be sold and used.

The damage to Samsung Foundry could be exacerbated by Google's ditching of the chipmaker, especially after rumors that Samsung Electronics plans to use Qualcomm's Snapdragon 8 Gen 4 processors in the Galaxy S25 phones, instead of the Exynos 2500 processors.

These developments could cause significant harm to Samsung Foundry's business, potentially significantly impacting its revenue, profits, and future projects.