Google pursues Apple's chip-design strategy, seeking direct relationship with Taiwan Semiconductor Manufacturing to build custom AI processors

Google told Taiwan Semiconductor Manufacturing it wants to become a "direct major customer," signaling a shift toward controlling its own chip design similar to Apple's approach with A-series and M-series processors.

Google has spent more than a decade building Tensor Processing Units (TPUs)—custom AI chips designed for its internal workloads—and now seeks greater control over manufacturing rather than relying on partners like Broadcom and MediaTek.

Apple's vertical integration in semiconductors yielded a services gross margin exceeding 76% and overall company gross margin of 49.3% in fiscal 2026 Q2, demonstrating the profit potential of owning the technology stack that Google aims to replicate for AI.

Google holds $174.4 billion in trailing operating cash flow and already has TPU infrastructure deployed at scale, positioning it to pursue chip development despite the Semiconductor Industry Association noting that advanced-node design costs can exceed $500 million.