Google may not use TSMC for Tensor G4 due to its high prices

Google is reportedly considering switching to TSMC for manufacturing its next-gen Tensor processor, the Tensor G4. However, the latter’s high prices may force it to stick with Samsung, which manufactured the first three generations of Tensor chips. The Pixel maker appears undecided at the moment.

Google started using custom Tesor processors in its Pixel smartphones in 2021. The Pixel 6 series was the first to feature a custom chipset. Last year’s Pixel 7 series used the second-gen Tensor G2, while the upcoming Pixel 8 series is all set to ship with the third-gen Tensor G3. The company also uses Tensor chips in mid-range Pixel phones.

All three Tensor processors, including the upcoming Tensor G3, are manufactured by Samsung. The Korean firm also helped Google in development (more on that later). However, Google now plans to switch to TSMC for manufacturing its future Tensor chips, starting with next year’s Tensor G4. The idea is to use TSMC’s 4nm process node for Tensor G4 and 3nm node for Tensor G5 in 2025.

By the looks of it, Google wants to move away from Samsung because of the latter’s recent troubles with yield rates and power efficiency. TSMC has been doing a better job than the Korean giant in these areas. It’s no wonder the Taiwanese firm captures almost 60 percent of the semiconductor foundry market, while Samsung comes a distant second with just about a 15 percent share of the market.

However, better things usually cost more, and that’s true in this case too. TSMC’s prices are reportedly “too high” compared to Samsung’s. As such, Google isn’t entirely sure whether to make the switch or stick with the Korean firm. Increased manufacturing cost of Tensor chips would hit its profit margin, or make Pixel phones more expensive. Samsung has also significantly improved its chip fabrication nodes in recent months. So that may also be tempting Google to stay. Time will tell what it decides.

Google may design Tensor G4 on its own, moving on from Samsung’s Exynos chips

While Google may be undecided about whether to have the Tensor G4 manufactured by Samsung or TSMC, it plans to design the new chip on its own. The company currently uses Samsung’s Exynos chips as the base for its custom processors. The unreleased Exynos 2300 reportedly serves as the base for the Tensor G3. Likewise, the first-gen Tensor chip was a modified version of the Exynos 2100, while last year’s Tensor G2 used the Exynos 2200 as its base.

However, Google no longer wants to rely on Samsung chips for its custom processors. Starting with the Tensor G4 next year, it will reportedly design chips on its own. It remains to be seen if Google completely cuts ties with Samsung’s semiconductor division next year or if TSMC’s prices are too high for it to switch from Samsung Foundry. We may get a confirmation in the coming months.