Samsung Electronics gains momentum in foundry with Google G4 chipset

[Courtesy of Samsung Electronics]

Samsung Electronics Co. has reportedly secured an order for Google LLC’s new smartphone application processor, Tensor G4, raising expectations for the South Korean chipmaker to expand its foundry market share.

According to industry sources on Monday, Samsung Electronics recently won an order for the Tensor G4 chipset, which will be featured in Google’s upcoming Pixel 9 smartphone set to be released next year.

Samsung Electronics had previously manufactured the Tensor G3 chipset for the Pixel 8 series last year.

The Tensor G4 is expected to be an upgraded model of the Tensor G3, with enhancements to the central processing unit. The new chipset is reportedly to be produced using Samsung‘s 4-nanometer (nm), third-generation SF4P process.

Initially, Google was expected to place orders for the G4 chipset with Taiwan Semiconductor Manufacturing Co. (TSMC), but due to disagreements with TSMC over the timing and quantity of production, Google has turned to Samsung Electronics.

The rapid increase in Samsung Electronics’ 4nm process yield is also believed to have played a role in the latest order.

Samsung‘s next-generation Exynos 2400 chip, which has made a comeback after two years, is also planned to be manufactured using this process.

Samsung Electronics has recently succeeded in finalizing some significant foundry deals in its primary 4nm 3rd generation and the upcoming 3nm process.

According to ADTechnology Co., Samsung foundry’s design solution partner, the company has signed a contract for a server-oriented semiconductor design project based on Samsung foundry’s 3nm process, ordered by overseas clients.

While the specific clients were not disclosed, it is assumed to be a U.S.-based high-performance computing chip company.

According to data from the chip trend tracker TrendForce in September, TSMC maintained its leading position in the foundry industry with a 56.5 percent share in the second quarter.

However, the market share decreased by nearly 4 percentage points compared to the first quarter’s 60.2 percent.

On the other hand, Samsung Electronics’ foundry business, which is ranked second, increased its market share to 11.7 percent from 9.9 percent during the same period.

Currently, Samsung Electronics is mass-producing the GAA-based 3nm first-generation with a yield rate of more than 60 percent, according to industry estimates. The second-generation process is also progressing, with estimated production commencing in 2024.

Jeong Ki-bong, Vice President of Foundry Business at Samsung Electronics, has expressed confidence in the potential growth of the chipmaker‘s foundry business, expecting a market shakeup once the next-generation processes enter into maturity with 2nm in 2025 and 1.4nm in 2027.