TAIPEI (Taiwan News) — Google has significantly increased orders for MediaTek AI accelerators, with supply chain estimates pointing to an earnings surge, UDN reported.

Industry sources said Google has expanded Tensor Processing Unit orders to MediaTek several times from original plans. MediaTek’s first Google TPU, the v7e, is set to enter trial production by the end of next quarter, while orders for the next-generation v8e have also been secured.

With backing from TSMC, MediaTek has stepped up orders for advanced process nodes and CoWoS packaging capacity. Supply chain sources said TSMC is expected to expand CoWoS capacity for MediaTek’s Google projects by more than sevenfold by 2027.

Market estimates suggest shipments of the v7e from next year through 2027 alone could deliver profits that are more than twice MediaTek’s paid-in share capital. MediaTek declined to comment on the reports while TSMC said it does not discuss business details involving customers.

Rising demand has also pushed up required CoWoS capacity, with MediaTek’s needs for Google projects next year climbing from 10,000 wafers to roughly 20,000 wafers annually. Sources said MediaTek is negotiating for more than 150,000 wafers of annual CoWoS capacity in 2027 as the v8e ramps up.

MediaTek CEO Tsai Li-hsing (蔡力行) has said the company’s first AI accelerator ASIC project is progressing smoothly, reaffirming a target of NT$31 billion (US$1 billion) in cloud ASIC revenue by next year. MediaTek’s consolidated revenue was NT$46.89 billion in November, a decrease of 9.86% month-on-month but an increase of 3.65% year-on-year.