The Zhitong Finance App learned that MRVL.US (MRVL.US) and Google (GOOGL.US) reached a custom chip cooperation and also issued a share warrant to Google, which allowed the latter to purchase shares of Mewell Technology worth approximately US$12.18 billion. Boosted by this news, as of press release, Maywell Technology's US stocks surged nearly 13% before the market on Wednesday.
In recent years, as companies seek alternatives to Nvidia's (NVDA.US) expensive graphics processors (GPUs), demand for Google's custom chips such as Tensor Processing Units (TPUs) for AI workloads has grown dramatically. According to a statement issued by Maywell Technology and Google, the two companies will cooperate to develop AI inference accelerators, memory controllers, network interface controllers, memory interface controllers, and near-memory computing technology.
In addition, Maywell Technology said it has issued a warrant to Google for the purchase of up to 58.97 million shares, and the exercise price is set at 206.58 US dollars per share. The company signed a commercial agreement with Google on July 29 to supply it with custom chip products. Within the first year after signing the agreement, 1,360867 million warrants will be owned each quarter. The remaining shares will be owned according to the “independent purchase” situation of Maywell Technology from the third quarter of fiscal year 2027 to the end of fiscal year 2033. Of these, every time a product jointly developed by the two parties brings in revenue of 500 million US dollars, a batch of shares will be owned.
Meanwhile, Maywell Technology's larger competitor, Broadcom (AVGO.US), fell more than 3% before the market. For a long time, Google mainly relied on Broadcom to help design its own TPU. Both Maywell Technology and Broadcom can help customers transform chip designs into chips that can actually be produced, provide back-end support before entering the wafer manufacturing process, and eventually hand them over to foundry factories such as TSMC. As large technology companies accelerate the development of AI self-developed chips, this business is becoming an important growth engine for both companies.