Meta to use Broadcom’s custom chips to build metaverse hardware

Meta is likely to use Broadcom’s ASIC custom chips to build its metaverse hardware. ASIC (Application-Specific Integrated Circuit) chips are expected to drive $2 billion to $2.5 billion in revenue for Broadcom in 2022.

“We believe these wins are primarily at 5 nanometre and 3 nanometre and will be used to power Meta’s metaverse hardware architecture that it will deploy over the next few years,” Harlan Sur, an analyst at JP Morgan, said.

Sur believes Meta will become Broadcom’s next $1 billion a year ASIC customer after Google. Broadcom and Google co-develop the tech giant’s custom chip used for machine learning.

The metaverse is a virtual space where people interact, work, and play.

ASICs are developed to efficiently perform hyper-specific tasks, including Artificial Intelligence (AI) and machine learning.

“Near-term ASIC program pipeline is strong as we believe Broadcom will be ramping Meta/Facebook and Microsoft ASICs this year,” Harlan Sur added.

Meta is investing in the metaverse and is developing a range of hardware products, including smart glasses and virtual reality headsets. Meta has opened its physical store where customers can buy these devices.

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