MediaTek's client base in the custom chip sector is quietly expanding.
According to the latest industry reports, MediaTek has secured its second major ASIC client beyond Alphabet (GOOGL), with the market widely expecting this client to be Meta Platforms, Inc. (META). Concurrently, MediaTek's collaboration with Alphabet continues to deepen, with mass production timelines for several of its TPU products now extending to 2028-2029, providing stable revenue support for the company in the coming years.
This development coincides with Qualcomm's (QCOM) high-profile announcement of its entry into the cloud AI market, formally establishing a competitive ASIC landscape between the two long-standing rivals.
Market observers believe that despite Qualcomm holding several cloud AI clients including Meta Platforms, Inc. and Microsoft, MediaTek is not at a competitive disadvantage, thanks to its deep ties with Alphabet and the potential addition of a second major client. If the ASIC business continues to expand, it may only be a matter of time before MediaTek's revenue scale approaches the tens of billions of dollars.
Deepening Collaboration with Alphabet and TPU Orders Secured Until 2029
The ASIC partnership between MediaTek and Alphabet is a core pillar of its cloud AI business. Industry sources familiar with the ASIC business confirm that MediaTek currently holds orders for products codenamed Zebrafish and Humufish, and it is almost certain that MediaTek will also be involved in the ninth-generation TPU product, Triggerfish. This means that from late 2026 through 2028 and into 2029, MediaTek can consistently receive revenue contributions from the mass production of these TPUs.
Semiconductor supply chain sources point out that among major cloud service providers, Alphabet remains the client with the strongest willingness to procure ASICs and the most aggressive iteration schedule. Once mass production timelines are set, the related revenue scale and implementation timeframe become highly predictable, which is of significant importance for the stability of MediaTek's performance.
Comparing Qualcomm's stated goal of $15 billion in cloud AI revenue by 2029, the industry believes that with multiple TPU orders in hand, MediaTek reaching a revenue scale of tens of billions of dollars is a reasonable expectation.
Second Client Likely Meta, Focusing on AI Accelerator Chips
Recent supply chain sources confirm that MediaTek is actively collaborating with Meta Platforms, Inc. on ASIC products, with the cooperation focusing primarily on AI accelerator chips.
It is noteworthy that Meta Platforms, Inc. has previously announced an AI accelerator chip collaboration plan with Broadcom and has also established CPU partnerships with Arm and Qualcomm. However, supply chain information indicates that these other collaborations have not interrupted the ongoing projects between MediaTek and Meta Platforms, Inc., suggesting that Meta Platforms, Inc. prefers to develop products in parallel with multiple partners.
Observers in the IC design industry note that Meta Platforms, Inc.'s development strategy in cloud AI in recent years has appeared relatively dispersed, with its in-house chip plans undergoing multiple adjustments and several different partners being introduced for CPUs. If MediaTek successfully secures Meta Platforms, Inc. as a client, it would significantly boost the subsequent growth of its ASIC business.
MediaTek's Focus on ASICs and Diverging Strategies from Qualcomm
In the face of Qualcomm's strong entry into the cloud AI market with its Dragonfly platform, the competitive strategies of the two companies show a clear divergence.
Industry sources in IC design point out that Qualcomm is pursuing a dual-track approach of customization and standardization, covering both AI accelerator chips and CPU product lines, with a more diverse client base. MediaTek, however, is concentrating its resources on the ASIC business, focusing deeply on the custom chip track.
The industry believes this strategic difference means their competition is not a full-frontal clash. For MediaTek, as long as it continues to solidify its core major client, Alphabet, in the ASIC segment and successfully develops second-tier clients like Meta Platforms, Inc., its competitive foundation will not fall into a disadvantageous position.
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