Google Taps MediaTek for Next-Gen AI Chips, Diversifying Supply Chain

Google is reportedly tapping MediaTek to design the next generation of its Tensor Processing Unit (TPU) AI chips, marking a significant shift away from its long-standing collaboration with Broadcom. This move signals Google's strategic intent to diversify its supply chain and adapt to the rapidly evolving demands of the artificial intelligence market.

The partnership, which could see the 9th and 10th generation TPUs enter mass production as early as 2028, is driven by the increasing need for AI chips that offer not only enhanced computing power but also improved cost-effectiveness per token and greater energy efficiency. MediaTek, with its extensive experience in designing power-efficient System-on-Chips (SoCs) for the mobile market, is seen as a suitable partner to meet these new requirements.

This development is poised to bring new opportunities to Taiwan's semiconductor sector. Industry observers anticipate that Taiwan Semiconductor Manufacturing Company (TSMC) will likely remain Google's primary foundry partner for manufacturing these next-generation TPUs, given MediaTek's close ties with the Taiwanese giant. Furthermore, Taiwan's strength in High Bandwidth Memory (HBM) and overall chip manufacturing capabilities are expected to be leveraged.

South Korean semiconductor firms, such as Samsung Electronics and SK Hynix, may also see benefits, particularly in the HBM sector. Reports suggest Google is evaluating their HBM4E products for integration into the new TPUs, potentially expanding their customer base beyond NVIDIA. However, concerns linger in the foundry sector, with speculation that TSMC's advanced process capacity might be strained, leading Google to consider Intel for manufacturing a portion of its TPUs starting in 2028. Google is also reportedly exploring Samsung's 2nm process technology for critical components and advanced packaging in its 10th generation TPUs.