Meta x Google: The Next AI Chip Shift and Taiwan’s Upside

Q1. What is the larger strategic signal behind Meta exploring Google’s TPUs
Meta is in advanced discussions to use Google’s TPUs, according to The Information and Reuters. The plan includes renting TPUs through Google Cloud next year and evaluating Google’s custom chips for Meta’s data centers around 2027. Meta’s AI budget could reach 72 billion dollars this year, creating significant room for alternatives to Nvidia. Analysts cited by CNBC say Google aims to capture about 10 percent of Nvidia’s annual revenue through a fully integrated model that includes Gemini, Google Cloud and TPUs. Alphabet’s stock rose more than 4 percent following the reports. The deeper message is clear. The AI hardware market is beginning to decentralize, reducing reliance on a single supplier and opening a new phase of competitive chip innovation.

Q2. Where is Taiwan positioned as this new landscape forms
Taiwan remains the center of gravity. Advanced packaging is becoming a defining bottleneck, and Taiwan leads this domain through TSMC and ASE. Media reports say ASE is investing NT 4.23 billion, roughly 134 million U.S. dollars, to acquire a new facility in Taoyuan and co develop another in Kaohsiung. These moves expand CoWoS capacity, which is essential for the AI accelerators that companies like Meta and Google now seek. Industry sources expect AI related CoWoS demand to continue through 2027. TSMC’s packaging lines are reportedly booked through 2026, underscoring how tightly constrained and strategically important Taiwan’s capacity has become.