MediaTek's AI chip business is getting a boost as TSMC offers to take on more of Google's next-generation TPU production, which is good news for MediaTek shareholders.

• Google is looking at TSMC's advanced chip packaging as a backup for its 2027 TPUs, easing worries that Intel's packaging supply would hold things up.
• A US brokerage raised its MediaTek target price, seeing the company's custom AI chip business reaching tens of billions of dollars by 2028.
• MediaTek may land a second big cloud customer, with SpaceX and an AI lab both showing interest; a decision could come by the end of the year.
• The stock still slipped today along with the broader Taiwan market.

Outlook: A second cloud customer win would be the next big catalyst for the shares, possibly as soon as this quarter.