MediaTek Emerges as Key Partner in Google’s Expanding TPU Strategy

MediaTek is reportedly strengthening its position in the global artificial intelligence hardware supply chain as demand for Google’s Tensor Processing Units continues to rise. Market reports indicate that Google has significantly expanded cooperation with the Taiwanese chipmaker, placing much larger orders than initially planned and setting the stage for a multi generation partnership. If confirmed, the deal would underscore how custom AI chips are reshaping relationships between cloud giants and semiconductor designers.

Growing demand drives deeper collaboration

Google’s internal demand for TPUs has surged as artificial intelligence workloads expand across its data centers and services. To support this growth, reports suggest that Google has partnered more closely with MediaTek to co develop a new generation of chips known as TPU v7e. Order volumes for this generation are expected to increase several times over earlier projections, reflecting stronger confidence in MediaTek’s design and execution capabilities.

This deeper collaboration signals a shift in how Google approaches its in house AI hardware. Rather than relying solely on limited design partnerships, Google appears to be scaling up cooperation with suppliers that can support rapid iteration and volume growth.

TPU v7e moves toward production

According to industry reports, the first TPU v7e customized by MediaTek for Google is scheduled to enter risk production by the end of the next quarter. Risk production is a crucial phase in chip development, allowing manufacturers to validate designs and manufacturing processes before full scale output begins. Reaching this stage suggests that development has progressed smoothly and that both companies are confident in the technical readiness of the new chip.

The TPU v7e is expected to play a role in handling increasingly complex AI inference and training tasks. While specific performance details have not been disclosed, the growing order size implies that Google anticipates wide deployment across its infrastructure.

Follow on orders point to long term partnership

Beyond the immediate production run, MediaTek is also expected to secure follow on orders for the next generation TPU v8e. This would indicate that the partnership extends well beyond a single product cycle. Securing two consecutive generations of a major cloud provider’s AI accelerator is significant, especially in a competitive landscape where companies often diversify suppliers to manage risk.

For MediaTek, landing repeat business from Google would elevate its standing in the high end custom silicon market, an area traditionally dominated by a small group of players.

Advanced packaging support from TSMC

A key enabler of the reported expansion is advanced packaging capacity from TSMC. MediaTek has reportedly obtained support for advanced packaging technologies, which are critical for high performance AI chips that require dense integration and efficient power delivery. By 2027, TSMC’s CoWoS capacity allocated to MediaTek’s Google projects is expected to increase more than sevenfold.

This scale up highlights how packaging has become as strategically important as chip design itself. Limited CoWoS capacity has been a bottleneck across the industry, and securing long term access provides MediaTek and Google with a competitive advantage.

Strategic implications for MediaTek

Traditionally known for mobile processors, MediaTek has been steadily expanding into data center and custom AI silicon. The reported Google TPU orders suggest that this strategy is gaining traction. Successfully delivering large volumes of advanced AI accelerators would demonstrate MediaTek’s ability to operate at the highest end of the semiconductor value chain.

At the same time, MediaTek’s growing role reflects a broader industry trend in which cloud providers seek diversified design partners to support their proprietary chips.

Cautious responses from the companies

Despite market speculation, MediaTek declined to comment on the reports, maintaining its standard policy on unannounced customer projects. TSMC similarly stated that it does not comment on business details involving individual clients. Such responses are typical in the semiconductor industry, especially when long term strategic partnerships are involved.

A signal of shifting AI chip dynamics

If the reported orders materialize as expected, they will highlight how the AI chip ecosystem is evolving. Custom accelerators are becoming central to cloud competition, and companies like MediaTek are emerging as critical partners in meeting this demand. The growing cooperation between MediaTek, Google, and TSMC illustrates how design expertise, manufacturing scale, and packaging capacity are converging to shape the next generation of AI infrastructure.