Google collaborates with MediaTek to develop next-gen AI chips in Taiwan

Google is pushing for collaboration with Taiwan's MediaTek to manufacture next-generation artificial intelligence (AI) chips, known as Tensor Processing Units (TPUs).

According to information technology (IT) specialist media outlet The Information on the 17th (local time), the TPU is an AI chip that Google has been developing in-house, having released the sixth generation at the end of last year and aiming for the seventh generation next year. MediaTek is the number one semiconductor design corporation in Taiwan. Google has been developing AI chips in collaboration with U.S. semiconductor corporation Broadcom for the past few years, but the next-generation chip development is being pursued through cooperation with MediaTek.

However, sources noted that Google has not completely severed ties with Broadcom. One reason Google chose MediaTek over Broadcom is that MediaTek maintains a strong partnership with the world’s largest foundry (semiconductor contract manufacturing) corporation TSMC and reportedly charges a lower expense per chip.

According to market research firm Omdia, Google was estimated to have spent $6 billion to $9 billion (13 trillion won) on TPU development alone last year. By collaborating with MediaTek to develop AI chips, it is calculated that the expense per chip can be reduced, thereby significantly lowering the overall expense for TPUs.

Google has been developing its own AI chips to reduce dependence on NVIDIA chips while equipping its data centers with NVIDIA AI chips. It is generating revenue by selling its self-developed chips to cloud customers, distinguishing itself from companies like OpenAI, which develops ChatGPT and is fully reliant on NVIDIA chips, and Facebook’s parent company Meta Platforms.

However, not only Google but also other large tech corporations are beginning to develop their own AI chips to decrease dependence on NVIDIA. OpenAI initially developed a custom AI chip with Broadcom and plans to complete chip design within a few months, aiming for mass production next year.

Microsoft (MS) and Amazon are also developing their own AI chips. Apple is also in the process of developing its own AI chips with Broadcom. Meta is reportedly in testing its self-developed AI chips.