Google Shifts Tensor G5 Chip Production to TSMC
• Google's decision to shift production of Tensor G5 chips from Samsung's foundry to TSMC's 3nm process has reportedly caused shockwaves in Samsung.• The move has led to a major account loss for Samsung, which has been manufacturing all Tensor chips since 2021.
• Samsung's 3nm manufacturing has struggled with yields as low as ~50%, compared to TSMC’s ~90%, raising performance and supply reliability concerns.
• Google's reasons for the move include:
- Process advantage: TSMC’s 3nm process delivers better energy efficiency, thermal performance, and consistency, key for Tensor’s AI-heavy workloads.
- Strategic long-term deal: Google's contract is expected to run through Pixel 14 (~2030), signaling a deep, multi-year partnership with TSMC.
- Fully custom silicon: Google is using TSMC to produce the first fully in-house designed Tensor G5 (codenamed “Laguna”), integrating bespoke ISP, TPU, and controller IP.
• Broader industry impact: The loss has triggered internal reviews, particularly around delays in its 4 nm/3 nm processes and yield issues.
• Samsung's response includes an internal investigation and broader review of foundry capabilities.
• The move highlights TSMC’s lead in chip fabrication and exposes critical vulnerabilities in Samsung’s foundry business.