Google is making waves in the technology sector with its Tensor Processing Units (TPUs), aiming to become the leading application-specific integrated circuit (ASIC) provider. A surge in demand for AI capabilities has prompted significant orders from tech giants like MediaTek and Broadcom. As the competition heats up, Google’s strategy involves expanding its manufacturing partnerships to keep up with the increasing appetite for its TPUs in both internal applications and external markets.
Ironwood Generation Spurs Demand
The spotlight has been on Google’s TPUs following the introduction of the Ironwood generation, hailed for its efficiency in handling inference workloads. This development has not only attracted internal attention but has also caught the eye of external clients, pushing Google to broaden its supply chain by collaborating with MediaTek alongside Broadcom. Sources suggest that Google has doubled its initial order for TPU v7e chips at MediaTek, as reported by industry insiders.
Strategic Manufacturing Partnerships
The collaboration with MediaTek is expected to significantly benefit from the increased orders, as Google is tapping into the capabilities of both MediaTek and Broadcom to fulfill the high demand for its AI chips. By diversifying its manufacturing partners, Google aims to leverage CoWoS allocation from TSMC to quicken its time-to-market. MediaTek’s proximity to Taiwan’s semiconductor giant positions it well to receive the necessary CoWoS and process allocations for the upcoming TPU v7e.
Adoption and Market Impact
Anthropic has committed to a significant investment in Google’s AI chips, securing TPU rack-scale infrastructure worth up to $10 billion, as confirmed by Broadcom’s CEO, Hock Tan. Furthermore, major players like Meta are also considering adopting TPUs, which are rapidly becoming a cost-effective choice for tech infrastructure. Amid discussions on whether TPUs will challenge NVIDIA’s dominance, Google’s custom silicon is currently at the forefront of the ASIC market.