Leaked documents from Google reveal the Tensor chip’s low price target for business sustainability and confirm why Qualcomm SoCs may never be used in Pixel flagships

The Pixel 6 kicked off Google’s Tensor chipset journey, with immediate successors appearing in newer models. For several generations, the Mountain View giant has been heavily criticized for favoring its chipsets over those from Qualcomm, which has resulted in these expensive flagships being noticeably slower than the competition and several reports of overheating appearing from time to time. Google will ultimately tackle the thermal aspect of its custom silicon by switching to TSMC’s 3nm N3E process for the Tensor G5. However, according to leaked documents, the company will likely never work with Qualcomm as it wants to continue making its smartphone business sustainable.

A new leak reveals that Tensor’s price target should not exceed $65 to make the Pixel business sustainable

No one can deny that the Snapdragon 8 Elite is Qualcomm’s best chipset yet, boasting a new manufacturing process and capabilities that rival or even surpass Apple’s A18 Pro. Unfortunately, the rumored price of $240 per unit will force phone makers to either sharply reduce their profit margins or make compromises elsewhere in the overall configuration to maintain positive cash flow.

If it is a decision for Google to secure a sustainable business for its Pixel range rather than using Qualcomm chipsets for superior performance and efficiency in its devices that may not last a few launches because the advertising giant is spending millions on chipsets wasted, we can see why Google sticks with the first approach. The tech giant is notorious for shutting down its underperforming ventures, with these closures occurring after just a few years.

The company’s desire to achieve a low Tensor price target shows that Google is absolutely serious about the Pixel family. According to Android Authority, the new financial goal is to reduce the price of each Tensor unit to $65. This is definitely a herculean task and could be the reason why Samsung was Google’s foundry partner for several years. TSMC may be at the forefront of the silicon race, but its wafer costs aren’t going down any time soon, meaning a higher bill for its new customer once the 3nm Tensor G5 shipments arrive for the Pixel 10.

At the same time, Google needs to maintain some competition with its rivals, even if that requires adopting a slower Tensor chipset, which puts the company in an extremely difficult position. We welcome it because it wants to ensure that the smartphone market remains competitive with annual Pixel releases, and given that it’s not easy to mass-produce even semi-custom silicon, we should Google in its decisions maybe don’t put it to the test too much.

News source: Android Authority