New Broadcom chips promise faster AI processing

AI revenue forecasts drive Broadcom’s innovation in semiconductor design and production.
Samsung and Texas Instruments to expand US chip production with $6.75 billion in government incentives.

Broadcom has announced breakthrough technology aimed at accelerating custom chip performance in response to rising demand for generative AI infrastructure. The innovation, known as 3.5D XDSiP, enhances memory integration and speeds up processing by directly linking critical components. Developed in collaboration with TSMC, the technique uses advanced packaging methods, including chip-on-wafer-on-substrate, which remains a bottleneck in AI chip supply chains.

The California-based chipmaker has positioned itself as a key player in the AI hardware market, supplying custom processors to cloud providers looking to diversify beyond Nvidia’s pricier options. Although Broadcom has not disclosed its partners, industry experts suggest that major companies like Google and Meta are among its clients.

Broadcom’s CEO, Hock Tan, stated in September that the company expects AI revenue to reach $12 billion in fiscal year 2024, reflecting a significant increase from earlier forecasts. Five products using the 3.5D XDSiP technology are currently in development, with production shipments planned for early 2026.

The custom chip market, valued at $45 billion by 2028, is set to be dominated by Broadcom and rival Marvell. Analysts predict continued growth for both companies as AI infrastructure demand expands globally.