[News] CSPs Accelerate ASIC Push in 2H26, Challenging NVIDIA as MediaTek, GUC, Alchip Benefit
NVIDIA outlined its AI roadmap at GTC 2026, doubling its 2025–2027 revenue target for the Blackwell and Rubin chips to $1 trillion, but the rise of ASICs may intensify competition in the AI chip market. According to Commercial Times, as major CSPs deploy in-house chip-based servers in the second half, they are expected to take share from NVIDIA’s existing AI chip market. Industry sources expect next-generation in-house chips from Google and AWS to ramp, lifting ASIC players across the supply chain, with Taiwan’s MediaTek, Global Unichip Corporation (GUC), and Alchip seen as key beneficiaries.
According to TrendForce, as CSPs such as Google and Amazon expand internal chip development, ASIC-based AI servers are forecast to account for 27.8% of total AI server shipments in 2026, rising to nearly 40% by 2030.
MediaTek, Alchip, GUC Ride ASIC Wave
CSPs’ push into ASICs is expected to drive growth among major ASIC designers. For MediaTek, Commercial Times notes that shipments of CSP ASIC products are set to begin in the second half of 2026, with full-year revenue contribution expected to exceed $1 billion and rise to the tens of billions of dollars in 2027. Economic Daily News adds that, although MediaTek has not disclosed its ASIC customers, the market widely speculates it has secured orders for Google’s TPU v7e and v8e.
Meanwhile, according to Liberty Times, Alchip has secured orders for AWS’s latest Trainium 3 chip. The company expects the 3 nm chip to enter mass production in the second quarter of 2026, with revenue projected to surge in the third quarter. As noted by MoneyDJ, Alchip also said multiple AI and high-performance computing projects at 2 nm are underway, with some 2 nm projects expected to complete tape-out by year-end.
TSMC affiliate GUC is also advancing customer design projects rapidly. Sources say it has secured next-generation CPU projects from Google and Meta, while its automotive ADAS programs have entered mass production and projects with U.S. brand customers have moved into the discussion stage, offering the potential for higher margins, as indicated by Commercial Times.
NVIDIA Navigates the ASIC Shift
Amid CSPs’ growing shift toward ASICs, Commercial Times notes that NVIDIA is seeking to engage with the ASIC market, such as by licensing NVLink to tie ASIC players more closely to its ecosystem, but the cost of building AI servers is coming under increasing scrutiny, prompting CSPs to turn more toward ASICs.
Commercial Times also points to supply constraints as a key factor shaping the competitive landscape. According to the report, ASIC players say capacity at major foundries for 3 nm, including wafers and packaging, has been fully booked through year-end and remains extremely tight. The report further notes, citing industry sources, that Google’s TPUs could potentially emerge as TSMC’s “hidden” third-largest customer as volumes ramp up.
Google’s TPU momentum continues to build. According to TrendForce, Google TPUs are projected to account for nearly 78% of AI servers shipped to Google in 2026, further widening the gap with GPU-based systems. Google remains the only CSP whose AI server build-out features more ASIC-based servers than GPU-based ones.
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