As Broadcom projected that next year's artificial intelligence (AI) revenue will top $100 billion (about 145 trillion won), it said it has secured both the high-bandwidth memory (HBM) needed for AI chips and Taiwan Semiconductor Manufacturing Co. (TSMC)'s advanced-node production lines. The company dispelled concerns about a memory-chip supply crunch and TSMC's limited capacity that have been holding back the AI industry's growth. Some say Broadcom's contract scale is comparable to Nvidia and AMD.
On the 6th, according to Broadcom, the company secured HBM and TSMC advanced-node production lines needed for AI chip production through 2028. While concerns are spreading inside and outside the industry that the rapid growth of AI could be hampered by memory-chip shortages and TSMC's limited capacity, Broadcom declared it had locked in all required volumes in advance, signaling confidence that it can sustain its growth.
Broadcom has grown rapidly by standing out in the application-specific integrated circuit (ASIC) market. U.S. big tech companies seeking to reduce reliance on AI chips supplied by Nvidia and AMD, and to manufacture AI chips tailored to their own AI models, are working with Broadcom. Google, Meta, Microsoft, and Amazon are cited as Broadcom's representative customers.
Broadcom said it has also strengthened its HBM and foundry supply chains to meet customer demand. Because the customer base is diversified, securing memory-chip volumes and advanced-node foundry lines is key. In particular, with HBM and TSMC supply constrained, advance contracts are essential for stable operations. In this regard, Broadcom also expressed confidence in its supply-chain buildout. Tan, the CEO, said, "We have already secured the supply chain needed to achieve this."
An industry official said, "TSMC's advanced-node production lines and HBM are seeing demand rise so steeply that shortages are emerging in the semiconductor industry," adding, "Broadcom having secured volumes in advance means ASIC demand is that solid."
Earnings growth is also steep. Broadcom said revenue for the first quarter of the 2026 fiscal year (November last year to January) was $19.31 billion (about 28 trillion won), up 29% from a year earlier. AI revenue was $8.4 billion (about 12.3 trillion won), up 106% from a year earlier. CEO Hock Tan said on a conference call, "We expect to achieve more than $100 billion in AI revenue next year in the chip institutional sector alone."
There is also a view that Broadcom will stand shoulder to shoulder with Nvidia and AMD, which split the AI chip market. Reuters reported, "The scale of Broadcom's AI chip contracts has drawn even closer to Nvidia and AMD," adding, "With the rise of ASICs, Nvidia's dominant position in the advanced data center infrastructure market is increasingly under threat."
Kim Se-hwan, an analyst at KB Securities, said, "Through this quarter's results, Broadcom suggested that the AI infrastructure market is expanding from a GPU-dominated structure (by Nvidia, AMD, and others) to ASIC-based accelerators," explaining, "This is because customers, feeling Nvidia's supply bottlenecks and high TCO (total cost of ownership), are shifting toward developing their own chips."