--- title: "Broadcom names MediaTek as Alphabet's TPU 8t partner, but skeptics say it gets the cheaper die" description: "Broadcom's earnings call put MediaTek inside Alphabet's TPU program for the first time, but the disclosure cuts both ways: MediaTek gets the training chip Alphabet is partly insourcing, Broadcom keeps the inference chip where demand compounds fastest. Two earnings prints this week price the difference." publisher: "The Inference" section: "Chips" published: 2026-10-27T13:17:03.164Z modified: 2026-10-27T13:17:03.164Z canonical: https://theinference.org/article/broadcom-names-mediatek-as-alphabet-s-tpu-8t-partner-but-skeptics-say-it-gets-the-cheaper-die language: en keywords: "Broadcom, MediaTek, Alphabet, AI Chips, Custom Silicon, Semiconductors" --- # Broadcom names MediaTek as Alphabet's TPU 8t partner, but skeptics say it gets the cheaper die > Broadcom's earnings call put MediaTek inside Alphabet's TPU program for the first time, but the disclosure cuts both ways: MediaTek gets the training chip Alphabet is partly insourcing, Broadcom keeps the inference chip where demand compounds fastest. Two earnings prints this week price the difference. [Broadcom](https://theinference.org/markets/companies/broadcom) put [MediaTek](https://theinference.org/markets/companies/mediatek)'s name in the record this quarter. [On its latest earnings call](https://www.tradingview.com/news/marketbeat:f21e62431094b:0-broadcom-s-ai-chip-business-is-booming-but-alphabet-s-strategy-highlights-2-key-risks/), Broadcom said MediaTek is [Alphabet](https://theinference.org/markets/companies/alphabet)'s development partner for the training-optimized TPU 8t, while Broadcom keeps the inference-optimized TPU 8i [1]. That single disclosure splits the bulls from the skeptics ahead of two prints this week: Alphabet reports October 28, MediaTek reports October 29, MediaTek's first quarter with a data-center AI line on the page [2]. ## The bulls count the pie, the skeptics count the slices The bull math: Piper Sandler projects TPU shipments tripling from 2.85 million units in 2025 to 4.5 million in 2026 and 8.8 million in 2027 [1]. [Counterpoint has MediaTek's share of custom-chip design work rising](https://theinference.org/article/marvell-and-mediatek-are-double-booking-one-tight-taiwan-wafer-queue) from 14% in 2027 to 26% in 2028, with the market tripling overall [1]. A 15% bounty of Google's training chip, on a tripling unit base, is a real business [1]. *Chart: **Macquarie sees Broadcom's Alphabet TPU share falling from 95% to 65% by 2028** Column chart showing Broadcom's estimated share of Alphabet's TPU program declining from 95 percent in 2026 to 80 percent in 2027 and 65 percent in 2028, per Macquarie estimates.* *Macquarie sees Broadcom's Alphabet TPU share falling from 95% to 65% by 2028 [1]* The skeptic math: Counterpoint believes Alphabet is bringing compute-die design and high-bandwidth memory buying in-house for the 8t, leaving MediaTek the input/output die, the cheaper half of the package [1]. Broadcom keeps the inference chip where [McKinsey](https://theinference.org/markets/companies/mckinsey) sees demand compounding at 35% a year through 2030 against 22% for training [1]. Macquarie has Broadcom's share of the Alphabet program easing from 95% in 2026 to 65% in 2028, a smaller slice of a bigger pie, but the richer slice [1]. ## What the AI line is worth today MediaTek's [third-quarter revenue hit a record TWD 168.06 billion](https://www.ad-hoc-news.de/boerse/news/corporate-news/mediatek-reports-record-quarter-what-it-means-for-mediatek-stock/70413138), up 10.43% sequentially and above guidance of TWD 152.2 to 159.8 billion [3]. Nine-month revenue: TWD 469.39 billion, up just 5.30% on the year [2]. The AI line, above $2 billion for full-year 2026 with the first data-center accelerator entering mass production this quarter, is a rounding error against that [3]. Management raised its 2027 data-center market target to 15% to 20% of an $80 billion market, and [Nvidia](https://theinference.org/markets/companies/nvidia) [put $3.5 billion of convertible bonds into the company](https://finance.yahoo.com/technology/ai/articles/nvidia-just-invested-3-5b-131418726.html) on August 31 [7][8]. *Chart: **TPU shipments projected to triple to 8.8 million units by 2027** Column chart showing projected TPU shipments rising from 2.85 million units in 2025 to 4.5 million in 2026 and 8.8 million in 2027, per Piper Sandler estimates.* *TPU shipments projected to triple to 8.8 million units by 2027 [1]* Against that, the shares [closed at TWD 4,010 on October 22, 26.8% below their TWD 5,480 high](https://www.ad-hoc-news.de/boerse/news/corporate-news/mediatek-sets-october-29-results-date-mediatek-stock-fell-3-14-percent/70415073), with 27 analysts averaging a TWD 6,032.85 target and DBS at Buy, TWD 6,200 [2]. Alphabet's October 28 call, with [its $514 billion cloud backlog that management says now includes TPU system sales](https://fourweekmba.com/ai-ex-mediatek-expert-sees-google-tpu-sales-at-51b-in-2027/), sets the tone a day earlier [4]. The phone-chip discount versus the AI re-rating gets its first real test this week. ## Takeaway Broadcom's earnings call named MediaTek as Alphabet's partner on the training-optimized TPU 8t, but skeptics say Alphabet is insourcing the compute die and leaving MediaTek the cheaper half of the package while Broadcom keeps the inference chip where demand compounds fastest. Alphabet and MediaTek results this week give the split its first test. ## Sources 1. [TradingView / MarketBeat, Broadcom's AI Chip Business Is Booming, But Alphabet's Strategy Highlights 2 Key Risks, 26-27 October 2026](https://www.tradingview.com/news/marketbeat:f21e62431094b:0-broadcom-s-ai-chip-business-is-booming-but-alphabet-s-strategy-highlights-2-key-risks/) 2. [ad-hoc-news.de, MediaTek sets October 29 results date: MediaTek stock fell 3.14 percent, October 2026](https://www.ad-hoc-news.de/boerse/news/corporate-news/mediatek-sets-october-29-results-date-mediatek-stock-fell-3-14-percent/70415073) 3. [ad-hoc-news.de, MediaTek reports record quarter: what it means for MediaTek stock, 26 October 2026](https://www.ad-hoc-news.de/boerse/news/corporate-news/mediatek-reports-record-quarter-what-it-means-for-mediatek-stock/70413138) 4. [FourWeekMBA, Ex-MediaTek Expert Sees Google TPU Sales at $51B in 2027, 27 October 2026](https://fourweekmba.com/ai-ex-mediatek-expert-sees-google-tpu-sales-at-51b-in-2027/) 7. [Yahoo Finance (GuruFocus), MediaTek Q2 2026 Earnings Call Highlights: AI ASIC Momentum Drives Record Results, 3 August 2026](https://finance.yahoo.com/technology/ai/articles/mediatek-inc-tpe-2454-q2-010316865.html) 8. [Yahoo Finance (Barchart), Nvidia Just Invested $3.5B in a Major Qualcomm Rival's AI Chips, 1 September 2026](https://finance.yahoo.com/technology/ai/articles/nvidia-just-invested-3-5b-131418726.html) --- Broadcom names MediaTek as Alphabet's TPU 8t partner, but skeptics say it gets the cheaper die — The Inference. Canonical: https://theinference.org/article/broadcom-names-mediatek-as-alphabet-s-tpu-8t-partner-but-skeptics-say-it-gets-the-cheaper-die