Google‘s plan to introduce its first custom chip for Pixel devices has faced a setback, with the release now pushed back to 2025, according to a report by The Information. Initially, the tech giant had intended to replace the modified Samsung Exynos chipsets in its Pixel phones with an in-house designed chip codenamed “Redondo” in 2024. However, the company has encountered challenges with employee retention and coordination between its US and Indian teams, which have contributed to the delay. Frustration arose within the project team when Google canceled the development of several Tensor chips over the past two years. To confirm these reports, inquiries have been made to Google.

This situation is reminiscent of Meta‘s struggle in developing custom chips for VR and mixed-reality devices. Eventually, Meta chose to collaborate with Qualcomm and utilize Snapdragon XR chips for its “future roadmap of Quest products” and other devices.

For the time being, Google will continue using semi-custom versions of Samsung’s chips, but manufacturing will eventually transition to TSMC, the renowned chipmaking giant responsible for Apple‘s iPhone chips. The upcoming custom processor, codenamed “Laguna,” will also incorporate advanced packaging technology predominantly used by Apple. This technology enables enhanced power efficiency while maintaining a slim chip profile.

As per the report, the Tensor team failed to deliver Redondo’s design to TSMC by the 2022 deadline for trial production, even after removing certain features. To facilitate the development of the new Laguna processor, Redondo will be produced as a test chip, referred to as the Tensor G5, manufactured on TSMC’s 3nm process. The demand for these 3nm chips, known for their power efficiency and performance advancements, is exceptionally high, with Apple reportedly reserving 90 percent of TSMC’s manufacturing for the first-generation 3nm process earlier this year.

Google’s objective is to completely move away from Samsung by 2025 and instead design its own Tensor processors in-house. Nevertheless, The Information asserts that Google will continue to license Arm CPU and GPU cores for the foreseeable future. Transitioning Tensor development away from Samsung could offer numerous benefits. The Samsung Exynos-based Tensor chips have received criticism for running hot, even under moderate workloads. Moreover, Samsung’s own Exynos-based phones have exhibited notable performance issues. By taking chip development in-house, Google gains greater flexibility to implement specific modifications to its designs, ultimately benefiting its future lineup of Pixel phones, tablets, watches, and other hardware.

However, designing custom processors is a costly endeavor, and Google may face challenges in generating significant returns on such a substantial investment. Although Google does not disclose its Pixel sales figures, research firm Canalys reported that the company sold 27.6 million Pixel phones since its launch in 2016. In comparison, Samsung and Apple shipped over 257 million and 232 million phone units, respectively, in 2022 alone, according to IDC data cited by Bloomberg in October last year. These numbers indicate that Google’s market presence may not be as strong as its competitors, potentially impacting the viability of its substantial chip investment.