Google Reportedly Partnering with MediaTek to Develop Next-Gen AI Chips
March 14, 2025 – Google is rumored to be collaborating with MediaTek to develop its next-generation AI chip, known as the Tensor Processing Unit (TPU). The new AI chipset is expected to enter mass production in 2026.
March 14, 2025 – Google is rumored to be collaborating with MediaTek to develop its next-generation AI chip, known as the Tensor Processing Unit (TPU). The new AI chipset is expected to enter mass production in 2026.
A Shift from Broadcom to MediaTek?
For years, Broadcom has been Google's exclusive AI chip design partner. However, despite Google's decision to explore collaboration with MediaTek, sources indicate that Google and Broadcom remain in talks to continue developing certain TPU models together.
The reason behind Google's strategic pivot toward MediaTek appears to be cost efficiency and closer ties with TSMC. Compared to Broadcom, MediaTek offers more competitive pricing per chip, making it an attractive partner for large-scale AI chip production.
Reducing Reliance on NVIDIA
Google has been actively designing custom AI server chips for its internal search and research operations while also offering these processors to cloud computing clients. This strategy aims to reduce dependence on NVIDIA, which currently dominates the AI chip market.
Despite investing an estimated $6 billion to $9 billion in TPU development last year, Google remains a significant NVIDIA customer. Reports suggest that Google has already placed orders exceeding $10 billion for NVIDIA’s Blackwell architecture AI chips.
Impact on the AI Semiconductor Industry
If the partnership between Google and MediaTek materializes, it could:
Diversify the AI chip supply chain, reducing the monopoly of leading suppliers.
Strengthen MediaTek’s position in high-performance AI computing, beyond its dominance in smartphone processors.
Bolster TSMC’s semiconductor production, given its existing relationships with both MediaTek and Google.
With rising AI demand from companies like Microsoft-backed OpenAI and Meta, Google’s move highlights a growing industry trend: tech giants are aggressively developing in-house AI hardware solutions to stay competitive in the generative AI race.
