Google's expanding AI chip business opens new opportunities for Samsung, SK hynix beyond Nvidia

Google's expansion of its custom artificial intelligence (AI) chip business to external customers could create new opportunities for South Korean memory makers Samsung Electronics and SK hynix to secure demand for high-bandwidth memory (HBM) beyond Nvidia's dominant graphics processing unit (GPU) ecosystem, according to a news report by The Korea Herald.

The US technology major is expanding sales of its tensor processing units (TPUs) to cloud providers and companies building AI infrastructure, potentially giving Korean memory suppliers access to a wider customer base.

Google said it now has nearly 100 TPU customers, including companies deploying the processors in their own data centres. Oracle also plans to offer Google's chips through its cloud platform next year, while Alphabet expects TPU system sales to increase substantially after contributing to Google Cloud's third-quarter growth.


The company unveiled two new TPU systems, TPU 8i Max and TPU 8tx, on Monday, taking its eighth-generation lineup to four systems. The 8i Max combines two chips in a single package, doubling computing performance and HBM capacity, while the 8tx is designed for AI workloads requiring stronger data security.

"The bigger story isn't Google's latest chip specifications. It's that Google is turning TPUs into a business serving customers outside its own data centers," the report said, citing an industry source.

The opportunity for memory suppliers is expected to grow as demand for customised AI chips increases. Counterpoint Research forecasts that HBM bit demand for custom AI server chips will rise 35-fold between 2024 and 2028.

Samsung is pursuing opportunities through Broadcom, Google's major TPU development partner. The two companies signed a memorandum of understanding in July covering HBM, foundry manufacturing and advanced packaging, with potential cooperation valued at more than USD 200 billion through 2030. However, the estimate covers multiple businesses and does not represent confirmed HBM orders.

SK hynix, meanwhile, has proposed jointly designing customised HBM for future TPUs, seeking to become involved earlier in chip development.

Google's procurement strategy could further benefit memory suppliers. Its work with Taiwan's MediaTek on the TPU 8t could help it move away from Broadcom's model, in which the design partner also handles memory purchases. Greater control over chip design and procurement could allow Google to work more directly with memory suppliers and reduce costs.

Counterpoint research director Hwang Min-sung described the shift as "a major opportunity for memory suppliers to create a high-value business".

However, the report said converting these opportunities into fresh orders could be challenging as production capacity is already heavily committed.

SK hynix said agreements with 14 major customers cover volumes equivalent to more than half its projected production capacity for 2027 and 2028.

This could make early participation in future chip designs increasingly important for Samsung and SK hynix as they seek to secure longer-term memory supply contracts, says Korea Herald.