Google has recently made a surprising change in its semiconductor sourcing strategy for the next generation of Tensor and AI chips. The company is now looking towards Taiwanese manufacturers, moving away from its previous reliance on Samsung. This shift is seen as a way for Google to differentiate itself in the market and potentially make a significant impact on Taiwan’s semiconductor industry.
According to a report from Taiwan Economic Daily, Google is actively seeking an alternative semiconductor supplier for its upcoming “Tensor” lineup of System on a Chip (SoC). Taiwanese firms, including KYEC, have been approached by Google, with KYEC reportedly securing a portion of Google’s orders. In order to support the manufacturing process and ensure a consistent supply, Google has also invested in KYEC’s facilities in Taiwan. The testing of the new process is expected to begin in the middle of the year.
Previously, Samsung Foundry was the exclusive supplier of Google’s Tensor chips, setting the lineup apart from competitors like Qualcomm. However, recent reports suggest that Google may shift to TSMC for the next generation of Tensor SoCs. This decision is believed to be driven by the perception that Google’s Tensor chips, which share similarities with Samsung’s Exynos in terms of performance and power efficiencies, hinder Google’s ability to stand out. Both chips also employ the same design, limiting Google’s differentiation in this aspect.
In addition to Tensor chips, Google is also expected to leverage KYEC for its AI chips. By opting for a relatively newer supplier in the market instead of the conventional choice of TSMC, Google aims to make a significant impact on Taiwan’s semiconductor industry. This strategic move not only provides Google with potential advantages in improving chip designs and performance but also represents a pivotal opportunity for KYEC to capitalize on Google’s trust and responsibility.
While the upcoming model of the Tensor lineup may not see significant changes, rumors suggest that the Tensor G5 SoC, still two generations away, could hold decisive elements for Google and its suppliers. This shift in semiconductor sourcing strategy marks a notable development in Google’s approach to chip manufacturing, signaling potential advancements and differentiation in its future products.
The decision to turn to Taiwanese manufacturers is a significant one for Google, as it represents a departure from its previous reliance on Samsung. By diversifying its semiconductor suppliers, Google aims to break away from the similarities between its Tensor chips and Samsung’s Exynos, and instead create a unique offering in the market. This move also presents an opportunity for Taiwanese manufacturers, such as KYEC, to establish themselves as key players in the semiconductor industry.
Overall, Google’s shift in semiconductor sourcing strategy is a bold move that could have far-reaching implications for the company and the industry as a whole. By seeking out alternative suppliers and investing in their facilities, Google is positioning itself for potential advancements and differentiation in its future products. It will be interesting to see how this strategic move unfolds and what it means for the future of Google’s chip manufacturing.
