Google Turns to Samsung for Chip Designs as Custom Chip Release is Pushed Back

Alphabet Inc GOOG GOOGL Google's ambitions to develop its chips for its Pixel phones are amid certain hurdles presently.

It has delayed the release of its first fully customized chip by at least one year, the Information reports. 

The chip was likely to act as the brains for its Pixel line of smartphones. 

Google had initially planned to release the chip, dubbed Redondo, in 2024, replacing the semi-custom chips it currently designs with Samsung Electronics Co, Ltd SSNLF. 

Instead, it will stick with Samsung for another year and wait until 2025 to launch a fully customized chip.

Samsung analysts expect its June-quarter profit to plunge 96% year-on-year to the lowest for any quarter in over 14 years due to the oversupply of chips.

Meta Platforms, Inc META, Microsoft Corp MSFT, and Amazon.Com, Inc AMZN are amongst companies migrating towards custom chips to curtail costs and tackle compatibility issues and supply crises while developing their AI models.

Price Action: GOOG shares traded lower by 2.09% at $120.06 on the last check Thursday.

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