Facebook parent Meta will use Broadcom's custom chips to build its Metaverse hardware, JPMorgan analysts said on Tuesday , making it the chip maker's next $1 billion (about 6.6 billion yuan) worth of hardware. ASIC (Application-Specific Integrated Circuit) customers.
"We believe the collaboration will focus primarily on the 5nm and 3nm chips that will be used to power Meta's Metaverse hardware architecture, which will be deployed over the next few years," said analyst Harlan Sur.
Meta is investing heavily in the metaverse, trying to build this virtual space where people interact, work and play, and act as an access point to the virtual world by adding new capabilities to hardware devices.
ASIC chips will bring Broadcom $2 billion to $2.5 billion in revenue this year, thanks to the Meta deal and partnerships with Google parent Alphabet and Microsoft, analysts said.
Sur added that Meta will be Broadcom's next $1 billion ASIC customer within three to four years after Google .
Broadcom's Semiconductor Solutions business, which manufactures custom chips, will contribute more than 70% of Broadcom's nearly $27.5 billion in 2021 revenue.
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