MediaTek’s shares fell 3.8% to NT$3,700 on Thursday after Marvell announced an expanded partnership with Google to develop custom chips, signaling a shift in the AI hyperscaler’s supply strategy.
The deal, disclosed on Wednesday, locks in future chip purchases with Marvell, while Google also continues its existing collaboration with Broadcom. The combined effect reduces the available business MediaTek can target from Google’s expanding custom-chip roadmap, analysts said.
The decline in MediaTek’s stock contrasted with broader gains in Asian tech equities, which were supported by a drop in U.S. Treasury yields overnight. The chipmaker’s shares had been trading higher earlier in the week, but the Marvell-Google announcement weighed on sentiment.
MediaTek, a key supplier of mobile and AI-related semiconductors, has faced increasing competition from rivals in the custom-chip space. The company’s exposure to hyperscalers like Google has been a focal point for investors amid rapid growth in AI infrastructure spending.
The stock’s retreat follows a period of volatility in global chip stocks, driven by shifting demand cycles and geopolitical supply concerns.
