Rumor
Google explores TPU development using external SerDes to diversify from Broadcom and MediaTek
Wednesday, February 4, 2026 at 11:45 PM
Google is reportedly exploring the development of TPU AI accelerators using external SerDes components to reduce dependency on Broadcom and MediaTek. While Broadcom currently captures a significant portion of Google's custom silicon CapEx, MediaTek is also competing for future design wins.
Context
Google is actively diversifying its AI hardware supply chain by decoupling SerDes components from its core TPU architecture. While Broadcom has long served as the primary ASIC partner, capturing billions in annual revenue, Google is now integrating MediaTek for next-generation projects. By exploring external or disaggregated SerDes modules, Google aims to source high-speed connectivity independently, reducing its reliance on all-in-one ASIC solutions. This shift allows for greater price competition and mitigates the risk of vendor lock-in as the company scales its global AI infrastructure.
This strategic move challenges the market assumption that Google’s record-breaking AI capex—projected to reach $48 billion to $50 billion annually—will translate directly into exclusive growth for Broadcom. The transition toward modular designs enables Google to leverage 224G SerDes technology from multiple vendors, potentially squeezing margins for established partners. For investors, the inclusion of MediaTek and the move toward in-house SerDes management represent a significant dilution of Broadcom’s dominance in the custom silicon market, with impacts expected to materialize by 2025.
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