MediaTek and TSMC help Google meet TPU v9 demand, and US foreign investors have raised their target price to 6,188 yuan

MediaTek and TSMC are actively assisting Google in meeting relevant needs. (Photo by reporter Zhuo Yijun)

[Reporter Zhuo Yijun/Taipei Report] IC design leader MediaTek (2454) has strong demand for its next-generation TPU v9 (codenamed Humufish) from major customer Google, but the market is worried that Intel's EMIB-T substrate supply may become Google's TPU There are potential bottlenecks in v9 shipments in 2028. The latest report issued by US foreign investors pointed out that according to the latest supply chain survey, Google is considering using TSMC (2330) CoWoS as a backup solution for TPU in 2027. MediaTek and TSMC are currently actively assisting Google meets relevant needs, and TSMC is willing to expand production support, which will help MediaTek's ASIC business growth in 2028. MediaTek's ASIC business revenue is estimated to be US$54 billion in 2028, and MediaTek's target price has been revised up from 5,588 yuan to 6,188 yuan.

MediaTek's stock price took a rest today along with the broader market. As of about 9:13, MediaTek's stock price fell 1.99%, temporarily trading at 5,180 yuan, with a trading volume of more than 2,470 contracts.

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According to the analysis of American foreign investors, in addition to Google TPU, another focus of discussion in the market is who might be MediaTek’s second CSP customer? Because MediaTek's design services have high technical content, including IP and design capabilities, and through its partnership with NVIDIA's NVLink Fusion, the probability of obtaining an AI ASIC project from another AI-focused CSP (cloud service provider) or AI laboratory customer is increasing. SpaceX and an AI laboratory customer have expressed interest in related cooperation. The customer may make a decision as soon as the fourth quarter. If MediaTek successfully obtains the project, it will become an important catalyst for the stock price.

U.S. foreign investors point out that MediaTek is reiterated as the top pick as Google TPU continues to increase in volume, the CoWoS and EMIB-T dual supply model reduces supply bottlenecks, and a potential second CSP customer brings new AI ASIC projects.

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