Google in talks with Samsung to manufacture TPU components

Google is negotiating with Samsung Foundry to produce parts of its custom Tensor Processing Units, a move that could reshape the semiconductor supply chain powering the AI boom.

Google executives visited Samsung’s fabrication facility in Taylor, Texas in December 2025 to discuss production volumes and manufacturing capacity, according to reporting from The Elec. No formal deal has been signed yet, but the consultations signal a meaningful shift in how Google sources its most important AI hardware.

Why Google is looking beyond TSMC

Google’s TPUs, co-developed with Broadcom, have historically been fabricated by TSMC. Samsung’s improving yield rates on advanced process nodes have apparently caught Google’s attention. Higher yields mean lower costs and more reliable supply.

Google and Samsung already have a deep relationship. Samsung currently provides more than 60% of the High Bandwidth Memory used in Google’s seventh-generation Ironwood TPUs. The memory partnership is expected to deepen further with the introduction of HBM4, Samsung’s next-generation memory technology scheduled for 2026.

The TPU cost advantage

TPUs reportedly deliver performance comparable to Nvidia’s H100 GPUs at roughly 80% lower costs. If Google can secure dedicated manufacturing capacity from Samsung, those cost advantages could widen further.

What Samsung gets out of this

For Samsung, landing Google as a foundry client would be a significant validation of its manufacturing capabilities. The company has struggled to win high-profile chip fabrication contracts against TSMC, which currently manufactures chips for Apple, Nvidia, AMD, and most other major players.

Samsung’s Taylor, Texas facility has been a focal point of the company’s US manufacturing ambitions. Securing a major customer like Google would help justify the billions Samsung has invested in American fab capacity.

What this means for investors

If a deal materializes, TSMC could see a marginal reduction in one of its largest custom chip contracts. For Samsung, a confirmed Google partnership would likely boost investor confidence in the company’s foundry division.

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