Google looks to dump Samsung Foundry for Taiwan Semiconductor Manufacturing Co TSM by 2025.

What Happened: Samsung Electronics SSNLF owns Samsung Foundry. The company lost a critical Alphabet Inc GOOG GOOGL Google smartphone deal to rival Taiwan Semiconductor due to Samsung’s outdated FO-PLP (fan-out panel-level packaging) technology, TechNode reports.

Taiwan Semiconductor will manufacture Pixel 10’s Tensor G5 using its 3nm process and the Pixel 11 series’ Tensor G6 using the 2nm process.

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Why It Matters: Samsung Foundry currently manufactures the Pixel 8’s Tensor G4 with its 4nm process.

Samsung collaborated with Taiwan Semiconductor to develop the bufferless high-bandwidth memory 4 (HBM4) AI chip for customers like Nvidia Corp NVDA and Google, TechNode cites Dan Kochpatcharin, Taiwan Semiconductor’s head of Ecosystem and Alliance Management during the Semicon Taiwan 2024 forum. The contract chipmakers proposed commercializing the new chip in the second half of 2025.

Taiwan Semiconductor reported 33% topline growth in August 2024, signaling optimism over the smartphone market recovery and continued demand for Nvidia AI chips. Taiwan Semiconductor stock is up over 88% in the last 12 months.

Analysts are projecting further upside for Taiwan Semiconductor and Nvidia, citing Big Tech’s AI ambitions as key drivers. Alphabet stock is up 12% in the last 12 months.

Price Actions: TSM stock is up 0.16% at $170.50 premarket at last check Thursday. GOOG stock is up 1.06% at $153.77.

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