Google's choice of MediaTek is strategic, as the company has a close relationship with Taiwan Semiconductor Manufacturing (TSMC), a major semiconductor manufacturer. This partnership allows Google to negotiate better production prices for its TPUs, projecting an expenditure between $6 and $9 billion in 2024 for these chips. This shift could significantly reduce costs.
However, Google is not entirely severing ties with Broadcom; reports indicate that Broadcom will remain involved in the design of certain Google chips. This move is more of a strategic reorganization rather than a complete break, as Google aims to diversify its partnerships in a highly competitive sector.
TPUs are crucial to Google's AI strategy, powering services like Google Search and YouTube, as well as the Gemini AI models. Google's commitment to its TPUs is vital for providing an alternative to Nvidia's GPUs, which dominate AI model training. The tech giant is also ramping up its recruitment of chip design engineers, particularly in Taiwan, aiming to develop its technologies internally.
