Meta Expands In-House AI Chips, Opening New Opportunities for Taiwan Suppliers

As demand for AI computing surges, technology giants are investing heavily in proprietary chips to reduce their reliance on suppliers such as Nvidia and AMD. Meta is developing a dedicated AI chip to improve the performance of AI recommendation algorithms and generative applications across its platforms while cutting high hardware procurement and operating costs. The initiative could have significant implications for the global chip supply chain and competitive landscape.

Meta's latest internally developed AI chip, code-named Iris, is scheduled to enter mass production in September 2026. The company is working with chip designer Broadcom, while foundry leader TSMC will manufacture the chip. The move is intended to reduce Meta's reliance on external chip suppliers such as Nvidia. Meta also expects to double its computing capacity in 2027 as it accelerates the deployment of proprietary chips to take greater control of its AI infrastructure.

Meta continues to develop its Meta Training and Inference Accelerator (MTIA) to reduce its reliance on Nvidia AI accelerators, while Samsung Electronics is using its 2nm process to pursue orders from major cloud providers. If Anthropic follows suit with a custom chip, the move could reshape the AI chip supply chain and affect the advanced-process competition between TSMC and Samsung.

As of July 20, 2026, market reports indicated that Samsung Electronics would mass-produce Meta’s third-generation MTIA using its 2nm process, with the order estimated at more than 10 trillion won. Anthropic is also reportedly evaluating Samsung’s 2nm technology for a custom chip, but neither company has announced a formal order, production date or shipment schedule.

Meta has long worked with Broadcom to develop its in-house MTIA AI accelerator chips. Custom designs for recommendation, advertising and generative AI workloads improve data-center computing efficiency. The initiative is central to securing the computing power Meta needs to build “personal superintelligence” and helps reduce its reliance on external GPU suppliers such as NVIDIA, along with the associated supply risks.

Meta and Broadcom have extended their MTIA partnership agreement through 2029 and plan to expand chip deployment. The collaboration will focus on the first MTIA chip built using a 2-nanometer process, which is expected to become a key foundation of Meta’s in-house AI computing infrastructure. The contract value and precise mass-production date have not been disclosed, but the agreement explicitly runs through 2029.