Google Teams Up with MediaTek to Craft Next-Gen Tensor AI Chip

Google is reportedly gearing up to collaborate with MediaTek to develop its next-generation artificial intelligence chip, the Tensor. This strategic partnership is expected to commence next year, according to sources familiar with the matter. The decision to team up with MediaTek is influenced by the Taiwanese company's close ties with TSMC (Taiwan Semiconductor Manufacturing Company), which is a critical factor considering TSMC's pivotal role in semiconductor production.

MediaTek's competitive advantage extends beyond its strong relationship with TSMC. Cost efficiency plays a significant role in Google's selection, as MediaTek offers a more economical alternative compared to other potential partners. This is particularly relevant in the context of Google's previous pricing disagreements with Broadcom, another of its collaborators based in California. Nevertheless, Google does not intend to sever ties with Broadcom, as discussions are ongoing for collaboration on certain AI chips that will still be produced by TSMC.

The upcoming Tensor Processing Unit (TPU) development will see a division of responsibilities between Google and MediaTek. Google is set to lead the design of key components, particularly the processor segment. On the other hand, MediaTek will focus on developing the input/output modules, which are essential for connecting the main processor to peripheral devices.