Google is teaming up with Taiwan’s MediaTek to develop its next generation of tensor processing units (TPUs), a move that could reduce Broadcom’s dominance as Google’s primary TPU supplier. According to tech publication The Information, the new chips will begin production at Taiwan Semiconductor Manufacturing Co. (TSMC) next year.
TPUs have been crucial to Google’s AI strategy, helping reduce its dependence on Nvidia. Research firm Omdia estimates Google spent between $6 billion and $9 billion on TPUs last year.
MediaTek reportedly secured this partnership partly because of its close relationship with TSMC and more competitive pricing compared to Broadcom. However, sources familiar with the matter indicated this doesn’t mean Google is ending its collaboration with Broadcom.
Under the new arrangement, Google will handle most of the TPU design work, while MediaTek will manage input/output modules that facilitate communication between the main processor and peripheral components. MediaTek will also oversee quality control and place orders with TSMC.
This deal marks MediaTek’s second major AI partnership this year, following its January announcement of collaboration with Nvidia on AI supercomputers at CES, with products expected to launch in May starting at $3,000.
