Google has gone to TSMC: Samsung is rethinking its semiconductor business strategy
By ForGeeks Google has abruptly dropped Samsung Foundry and signed a multi-year contract with Taiwan’s TSMC to produce Tensor chips for Pixel smartphones – at least until the Pixel 14 series.
Reasons for Google’s departure
According to insiders, the key factors were the low yield and power efficiency of Samsung’s lines. An additional motive was Google’s fear that its chip secrets could leak to the South Korean company’s mobile division, a situation that also caused Apple to switch to TSMC a decade ago.
Samsung’s internal discussions: business splits and personnel reshuffles
Samsung is considering several scenarios: spinning off Foundry into a separate company and transferring part of its System LSI design division to Samsung’s MX smartphone business unit. The Device Solutions global strategy meeting, led by vice chairman Jeong Young-hyun, is discussing moves to strengthen Foundry.
Lost customers and falling market share
In recent years, Samsung Foundry has lost Qualcomm (after Snapdragon 8 Gen 1 overheating issues), Nvidia (RTX 3000 series) and now Google. Samsung’s market share in contract chip manufacturing has fallen to 7.7 percent, while TSMC holds 67.6 percent.
Plans for 3nm and 2nm, collaboration with Synopsys
Despite multi-billion dollar investments, Samsung’s 3nm process is only demanded so far by its own System LSI. The 2nm process is also experiencing problems with yielding good crystals. The company has engaged Synopsys to improve yield and is shifting its focus to automotive and robotics solutions. A successful launch of the 2nm Exynos 2600 without overheating and trottling could help win back customers like Nvidia and Qualcomm.
Outlook to 2030
The corporate goal of “catching up and overtaking TSMC” by 2030 is being pushed back: for now, the gap is growing. Samsung is betting on foundry business structure reform and technology improvements, hoping to reverse the trend and close the gap in the next technology cycle.
Samsung is betting on reforming its foundry business structure and improving technology, hoping to reverse the trend and close the gap in the next technology cycle.
The article Google goes to TSMC: Samsung reconsiders its semiconductor business strategy was first published on ITZine.ru.
