Broadcom Secures TSMC Advanced-Process and HBM Capacity Through 2028 in AI ASIC Push

Demand for generative AI computing is rising rapidly, prompting cloud providers including Google and Meta to expand their use of custom ASICs and reduce reliance on general-purpose GPUs from Nvidia and AMD. Broadcom designs the chips and relies on TSMC’s advanced processes for mass production, making access to wafer capacity and high-bandwidth memory, or HBM, critical to gaining ground in the AI infrastructure market.

Broadcom said it has secured the TSMC advanced-process capacity and HBM supplies it needs through 2028 to meet customers’ growing orders for custom AI chips. CEO Hock Tan also forecast that Broadcom’s AI revenue would exceed $100 billion in 2027. With TSMC’s capacity nearing its limit, the industry is increasingly turning to three- to five-year contracts to lock in critical supplies early.