It is reported that J.P. Morgan analysts said today that meta platforms, the parent company of Facebook, will use Broadcom's customized chips to produce its "meta universe" hardware. This means that meta platforms will become the "next billion dollar" ASIC chip customer of Broadcom.
Morgan said that thanks to the transaction between Broadcom and meta, as well as the partnership with alphabet and Microsoft, ASIC (application specific integrated circuit) chips will bring Broadcom $2billion to $2.5 billion in revenue this year.
Analyst Harlan sur said: "we believe that these contracts are mainly 5nm and 3nm processes, which will be used to support meta's meta universe hardware architecture." At present, meta is investing heavily in the field of meta universe, including adding new functions to the hardware as the entrance to its meta universe.
Sur also added that after Google, meta will become the "next ASIC customer contributing $1billion a year" of Broadcom in the next three to four years.
ASIC chips are designed to efficiently perform specific tasks, such as artificial intelligence and machine learning. Since 2016, Broadcom and Google have been jointly developing Google customized chips for machine learning tasks. JPMorgan Chase estimates that the scale of this cooperation will exceed US $1.3 billion this year.
Meta is currently developing a series of hardware products for metauniverse, including smart glasses and virtual reality (VR) head displays. In addition, meta has opened its first physical store where shoppers can try out these and other devices.
Sur believes that Broadcom will strengthen cooperation with meta and Microsoft in the field of ASIC this year. Last year, the semiconductor solutions business (mainly producing customized chips) contributed more than 70% of the nearly $27.5 billion revenue of Broadcom.
Last week, Broadcom also announced that it would acquire VMware, a cloud computing company, at a price of about US $61billion. This is one of the largest technology transactions in history, which will make Broadcom a strong competitor in the software field.