Marvell Maintains $120 Billion Google Chip Contract

The six-year partnership secures a future for custom silicon despite investor impatience regarding near-term revenue gains.

Updated on Oct. 16, 2026 in Semiconductors

Bold flat-color editorial illustration of a silicon wafer on a pedestal, representing the strategic partnership for high-performance custom hardware. — Marvell Technology has reaffirmed its multi-year custom silicon contract with Google, a partnership valued at up to $120 billion. AI Illustration. Upload story photo >

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Marvell Technology maintains its long-term custom chip contract with Google as the company navigates investor concerns regarding revenue timelines. The agreement, announced in August 2026, involves a deal valued at up to $120 billion tied to specific chip delivery milestones.

Why it matters

The deal represents a significant bet on the future of custom silicon, though investors remain sensitive to the fact that primary revenue inflection is not anticipated until fiscal 2029. Marvell continues to use this contract to underpin its long-term growth targets in the custom silicon market.

Google holds warrants for up to 58.97 million shares at a $206.58 exercise price, earning 240,000 shares for every $500 million in qualifying purchases. These warrants vest based on product delivery rather than lump-sum payments.

The players

Marvell Technology

A semiconductor company focusing on custom silicon, data infrastructure, and high-speed networking components.

Google

A technology conglomerate building extensive cloud and AI infrastructure that requires bespoke silicon solutions.

The details

The agreement functions through a series of performance-based vesting milestones. Google earns ownership in Marvell through purchasing custom-designed silicon, linking the stock incentive directly to active hardware adoption rather than passive time-based cycles. This strategy aims to align Marvell's development of high-performance custom chips with Google's ongoing infrastructure requirements.

August 2026: Marvell announced the custom silicon deal.
August 28, 2026: The company reported fiscal second-quarter earnings.
October 2026: Marvell updated its long-term revenue targets during an investor day.
Fiscal 2028: The company targets $20 billion in total revenue.
Fiscal 2029: The projected revenue inflection point for the Google contract.

The Tech Race

Marvell's custom silicon push follows the established trend of hyperscalers developing bespoke hardware to optimize data center performance. This strategy positions Marvell against internal development efforts and competing design services within the broader semiconductor market.

The deal signals long-term stability for Marvell's custom chip business, which currently comprises 18% of the company's sales. Investors and industry observers should watch fiscal 2029 performance as the primary indicator of the contract's actual influence on financial results.

The takeaway

The trajectory of this deal hinges on whether Marvell can sustain its $70 billion to $90 billion revenue target by fiscal 2031. Readers should monitor future quarterly earnings updates for progress against the $20 billion revenue goal set for fiscal 2028.