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MediaTek projected to ship 2.5 million Google TPU units by 2027
Wednesday, February 4, 2026 at 06:49 AM
Morgan Stanley projects that MediaTek will ship 2.5 million Google TPU units by 2027, potentially securing a 40% market share in this segment.
Context
Morgan Stanley has significantly upgraded its outlook for MediaTek, projecting the Taiwanese chipmaker will ship 2.5 million Google TPU units by 2027. This forecast implies that MediaTek will capture approximately 40% of the market share for Google’s custom AI accelerators, successfully breaking the long-standing dominance of rivals like Broadcom. The aggressive ramp-up aligns with Google’s broader strategy to diversify its supply chain and potentially sell its custom silicon to external customers such as Meta.
This partnership marks a critical pivot for MediaTek as it shifts resources from the slowing smartphone market toward high-margin AI infrastructure. CEO Rick Tsai recently indicated that the company’s AI ASIC revenue is expected to reach $1 billion in 2026 before expanding into a multi-billion-dollar scale by 2027. With production for the TPU v7 slated for 2026 and follow-on orders already secured for the TPU v8 generation, MediaTek is positioned as a primary beneficiary of the surging demand for cost-effective alternatives to Nvidia hardware.
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