Google Signs Custom Semiconductor Deal with Marvell

Google's custom semiconductor contract with Marvell Technology has split market interpretations regarding MediaTek's AI ASIC business. Marvell signed a commercial agreement with Google on July 29, agreeing to collaborate on the development of various components, including AI inference accelerators and storage controllers. Marvell granted Google warrants to purchase up to 58,979,907 shares at $206.58 per share, amounting to a total exercise value of $12.18 billion. Part of the contract will be attributed starting from the third quarter of the 2027 fiscal year, and Google is distributing custom components around its TPU ecosystem to multiple suppliers. MediaTek has raised its revenue forecast for AI data center ASICs to $2 billion by 2026, expecting the market size to reach $70 billion to $80 billion in 2027. The contract between Google and Marvell suggests that while MediaTek can expect to benefit from the growing demand for custom AI semiconductors, the environment is becoming increasingly segmented in terms of supply chains and design authority.

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