Google & MediaTek Develop AI Chip, TSMC to Produce in 2025

According to reports, Google is partnering with MediaTek to develop its next-generation Tensor Processing Unit (TPU), with production scheduled to begin at TSMC in 2025. This move will allow MediaTek to take over a portion of the TPU orders that were previously fulfilled by Broadcom.

TPUs have been a key factor in Google's AI strategy, helping to reduce the company's dependence on NVIDIA. Market research firm Omdia estimates that Google invested between $6 billion and $9 billion in TPU development last year.

Previously, Google worked primarily with Broadcom for TPU production. If the collaboration with MediaTek proceeds as planned, Broadcom may need to share TPU orders. Following these reports, Broadcom's stock fell by over 4% in early trading on March 17 before recovering.

Industry sources familiar with the matter indicate that Google's decision to work with MediaTek was influenced by its strong ties with TSMC and lower per-chip costs compared to Broadcom. However, this does not suggest that Google is ending its partnership with Broadcom.

Insiders revealed that Google will handle most of the design work for the next-generation TPU, while MediaTek will focus on developing the I/O modules that manage communication between the main processor and peripheral components. This represents a shift from Broadcom's previous role, which involved co-developing the core TPU chip with Google.

Despite these changes, MediaTek's role still bears some similarities to Broadcom's. According to sources, MediaTek will also oversee quality control and coordinate production with TSMC.

MediaTek has been expanding its presence in AI. In January, at the Consumer Electronics Show (CES), the company announced a strategic partnership with NVIDIA to advance AI supercomputing—marking the first time the two companies have collaborated on a major AI project.

NVIDIA CEO Jensen Huang stated that this AI supercomputer, expected to launch in May with a starting price of $3,000, will be capable of running NVIDIA’s full AI architecture. The project, known as “Project DIGITS,” will feature NVIDIA’s GB10 Grace Blackwell superchip, reinforcing MediaTek's growing role in AI hardware development.