Google to Partner With MediaTek for Next-Gen TPU

Google to Partner With MediaTek for Next-Gen TPU

  • 18.03.2025 08:33
  • analyticsindiamag.com
  • Keywords: dangerous, dangerous

Google is partnering with MediaTek for its next-generation TPUs, shifting from Broadcom after nearly a decade. This move aims to improve cost leverage and production efficiency, with Google focusing on design and MediaTek handling input/output modules.

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Estimated market influence

Google

Positivesentiment_satisfied
Analyst rating: N/A

Google is a major player in AI and cloud computing, with significant financial investments in TPUs.

MediaTek

Neutralsentiment_neutral
Analyst rating: N/A

MediaTek will collaborate with Google on the next-gen TPU design, handling input/output modules.

Broadcom

Broadcom

Negativesentiment_dissatisfied
Analyst rating: Strong buy

Google is considering reducing reliance on Broadcom as a TPU supplier but hasn't cut ties yet.

Context

Analysis of Google's Partnership with MediaTek for Next-Gen TPUs

Key Facts and Data Points

  • Partnership Announcement: Google will collaborate with MediaTek for the next generation of Tensor Processing Units (TPUs), marking a shift from Broadcom as the primary supplier after nearly a decade.
  • No Immediate Diversification: Despite the new partnership, Google has not severed ties with Broadcom.
  • Strategic Rationale: The move aims to leverage MediaTek’s ties with TSMC to gain cost advantages in chip production.
  • Design and Production Split: Google will handle most of the TPU design, while MediaTek will manage input/output modules (unlike the Broadcom partnership where Broadcom developed core chip components).

Market Implications

  • Shift in Supplier Dynamics: The partnership signals a strategic reorientation in Google’s supply chain, potentially reducing reliance on Broadcom.
  • Cost Leverage: By working with MediaTek and TSMC, Google aims to secure better pricing and production terms for its custom TPUs.
  • TPU Spending: Google spent $6 billion to $9 billion on TPUs in 2023, underscoring their critical role in AI infrastructure.

Competitive Landscape

  • Market Valuation: An industry analyst estimated the potential standalone TPU business could be worth over $700 billion.
  • Alternative to NVIDIA: Google’s TPUs have served as an alternative to NVIDIA’s GPUs, positioning them as a key player in the AI chip market.
  • Performance Improvements: The new Trillium TPU offers:
    • 4x Performance Improvement over its predecessor.
    • 67% Increase in Energy Efficiency.
    • 3x Higher Inference Throughput.

Strategic Considerations

  • Technological Leadership: Google’s focus on custom TPUs reinforces its commitment to maintaining technological leadership in AI hardware.
  • Diversification of Supply Chain: The partnership with MediaTek may help mitigate risks associated with sole reliance on Broadcom.
  • Long-Term Effects: This move could reshape the AI chip market, potentially challenging NVIDIA’s dominance and fostering greater competition.

Regulatory and Industry Impact

  • Regulatory Considerations: While not explicitly mentioned, the partnership could have broader implications for semiconductor supply chain regulations, particularly in regions like the U.S. and Taiwan.
  • Industry Trends: The shift reflects a broader trend of tech giants investing in custom AI chips to optimize performance and reduce costs.

This partnership underscores Google’s strategic pivot to strengthen its position in the AI hardware race while balancing supplier relationships to ensure operational resilience.