Alphabet’s Google is now a microprocessor maker. The search giant has announced that it would begin to build its own smartphone processor called Google Tensor. In the past, Google had relied on Qualcomm, one of the finest mobile chipset makers in the world. So, as Google Pixel 6 and Pixel 6 Pro phones launch, Google Tensor will power them.
It is what it is, just as I noted a few days ago: “They taught us in the economics class that companies have to specialize and build core competencies. They need to do things really well and be the best possible in their chosen domains. But today, especially in native tech companies, we think that does not overly make sense as technology has changed the cost of entering into new domains….People, build a technology stack and expand the stack into anything you want in future. Once the foundational stack is there, adding new things on top of it becomes easier and cost-efficient.” This redesign will reshape the future of technology competition.
Google announced Monday it will build its own smartphone processor, called Google Tensor, that will power its new Pixel 6 and Pixel 6 Pro phones this fall.
It’s another example of a company building its own chips to create what it felt wasn’t possible with those already on the market. In this case, Google is ditching Qualcomm. The move follows Apple, which is using its own processors in its new computers instead of Intel chips. And like Apple, Google is using an Arm-based architecture. Arm processors are lower power and are used across the industry for mobile devices, from phones to tablets and laptops.
Qualcomm said it will continue to work closely with Google on current and future products based on its Snapdragon platform.
In the past, if you were not Apple, Samsung and Huawei, your chipsets likely came from MediaTek and Flextronics. For those elite three, Intel and Qualcomm provided some core technologies. But over time, most have weaned themselves from these native chipmakers. Intel’s current paralysis began when Apple brought its chipmaking in-house. It has already caused another company to go bankrupt in Europe when it stopped working with the company on mobile chips.
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Google wants unification of hardware and software to make it easier to bake AI in its phones by having the ability to control every aspect of the transistor. As that happens, I expect the rise of Pixel phones to begin. Google needs that in order to keep Android very relevant for the upper middle class. Yes, you do not want people to begin with your product only to graduate to iPhone.
Google wants to offer a compelling product which people can see as a brand to attain a stable equilibrium into. So, even if all Android products underperform, Google Pixel will be there for those who want quality, in the range of iPhone. That strategy will keep Android relevant.
With TSMC available, Google can assemble circuit designers and they can design for the company to fabricate. TSMC is equivalent to Google Cloud in the semiconductor industry; it manufactures designs from anyone, saving companies the need to invest in multi-billion dollar foundry business and associated domain capabilities.
People, the playbook has changed!
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“Google wants unification of hardware and software to make it easier to bake AI in its phones by having the ability to control every aspect of the transistor”.- Product Optimization.
This is a great news and a good sign of foresight and proactiveness, they indeed leant from the mistake of Nokia who was reluctant with moving forward into bigger things on time.
Google understands that the Android still has a considerable time span, and the only way to cash out hard is to build products that helps it compete strategically.
A full stack developer, compared to front or back end dev are never the same, although the latter may claim to be a specialist, however this matter little to Google has it is a team of people who can be made to specialize on the individual section.
Brilliant piece by the way.
Good Morning.
Those who are already up there are still working hard to own their future, apparently successful ones still work harder than those who are yet to break any ceiling…
Interesting times.
Indeed