Broadcom Secures Google’s Seventh-Generation TPU Orders Amid MediaTek Partnership
March 14, 2025 – Despite reports that Google is collaborating with MediaTek on its next-generation Tensor Processing Units (TPUs), Broadcom remains a key supplier, securing orders for Google’s upcoming TPU v7 series, which is expected to launch in 2026.
March 14, 2025 – Despite reports that Google is collaborating with MediaTek on its next-generation Tensor Processing Units (TPUs), Broadcom remains a key supplier, securing orders for Google’s upcoming TPU v7 series, which is expected to launch in 2026.
Google Adopts Dual-Supplier Strategy for AI Chip Development
While speculation suggested MediaTek might replace Broadcom, industry sources confirm that Google is diversifying its supply chain, awarding contracts to both Broadcom and MediaTek for different TPU models.
According to reports, TPU v7 will come in two versions:
TPU v7p (3nm) – Designed by Broadcom.
TPU v7e – Features an ASIC die designed by Google, paired with I/O solutions from MediaTek, generating additional revenue for MediaTek.
The decision to involve MediaTek stems partly from its strong relationship with TSMC and lower per-chip costs compared to Broadcom. However, Broadcom retains the majority of Google’s ASIC business, with TPU chips contributing 60-80% of Broadcom’s ASIC revenue.
Broadcom’s AI Semiconductor Revenue Surges
Broadcom continues to see significant demand for AI semiconductors, with its latest financial projections estimating $4.4 billion in revenue from AI chips in Q2 2025. The bulk of this revenue comes from hyperscale cloud providers investing in custom AI chips to enhance data center computing capabilities.
Google's TPU Spending Exceeds $6-9 Billion Annually
According to Omdia, Google’s TPU investments reached between $6 billion and $9 billion last year, making it one of the largest buyers of custom AI accelerators. As AI workloads continue to scale, Google’s commitment to in-house AI hardware remains critical to its cloud computing strategy.
Conclusion
Google's dual-supplier approach ensures supply chain stability and competitive pricing while maintaining Broadcom as a key partner for its TPU roadmap. Meanwhile, MediaTek’s entry into the AI chip market signals a broader shift in the semiconductor industry, as more companies seek to diversify supply chains and optimize AI hardware performance.
