Google in talks with Samsung to make part of next-gen chip, The Information reports

Summary

Google is in talks with Samsung Electronics to manufacture a component of its next-generation AI processor codenamed 'Icefish,' with Samsung potentially producing the memory-connecting component using its 2-nanometer technology while TSMC makes the main computing part, as Google works to reduce reliance on TSMC amid surging AI chip demand that could bottleneck the industry.

Market Impact

Landing the contract would mark a significant win for Samsung's push to grow its contract chip-manufacturing business, building on its July 2025 $16.5 billion AI chip deal with Tesla using the same 2nm process and April plans to expand a second Texas plant. The report follows news that Google was separately in talks with Intel to manufacture more than three million TPUs in 2028, suggesting Google is deliberately diversifying its AI chip supply chain across multiple foundries—Samsung, Intel, and TSMC—rather than concentrating risk with a single manufacturer. Icefish, still in development with chip designer MediaTek, could enter mass production as early as 2028, positioning the diversification strategy as a multi-year hedge against TSMC capacity constraints during the AI infrastructure buildout.

Why It Matters

Google's multi-foundry AI chip strategy across Samsung, Intel, and TSMC signals how hyperscalers are deliberately diversifying semiconductor supply chains to hedge against capacity bottlenecks at any single manufacturer during the AI infrastructure buildout.

Key Points

• Google is in talks with Samsung to manufacture a component of its next-generation AI processor 'Icefish,' with Samsung potentially using 2-nanometer technology to connect the chip to memory
• TSMC would make the main computing part of the tensor processing unit; the chip is being designed with MediaTek and could reach mass production as early as 2028
• Samsung landed a $16.5 billion AI chip deal with Tesla in July 2025 using the same 2nm process and is considering a second Texas plant to expand capacity
• The report follows news that Google was separately in talks with Intel to manufacture more than three million TPUs in 2028, suggesting deliberate multi-foundry diversification away from sole TSMC reliance

Key Entities

Evidence

Alphabet's Google is in talks with Samsung Electronics to manufacture part of its next-generation artificial intelligence processor, The Information reported on Thursday

Supports: Confirms the talks and the AI processor context

Google plans for TSMC to make the main computing part of the tensor processing unit, codenamed "Icefish", while Samsung may produce a component that helps connect it to memory using its 2-nanometer production technology

Supports: Documents the specific chip design split between TSMC and Samsung

The Information reported on Monday that Google was in talks with Intel to manufacture more than three million TPUs in 2028.

Supports: Grounds the broader multi-foundry diversification pattern