Analysts at JPMorgan Chase said on Tuesday that meta, the parent company of Facebook, will use the customized chips of Broadcom to build its meta universe hardware, and become the next ASIC (application specific integrated circuit) customer of the chip manufacturer with a value of $1billion (about 6.6 billion yuan). "We believe that the cooperation will mainly focus on 5-nanometer and 3-nanometer chips, which will be used to provide power for meta's meta universe hardware architecture, which will be deployed in the next few years." Analyst Harlan sur said.
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Meta invests heavily in metauniverse, trying to build this virtual space where people interact, work and play, and acts as the access point of the virtual world by adding new functions to hardware devices.
Analysts said that thanks to the transaction with meta and the cooperation with Google parent company alphabet and Microsoft, ASIC chips will bring us $2billion to US $2.5 billion to Broadcom this year.
Sur added that meta will become the next ASIC customer of Broadcom with an annual revenue of $1billion within three to four years after Google.
Broadcom's semiconductor solutions business manufactures customized chips, contributing more than 70% to Broadcom's revenue of nearly $27.5 billion in 2021.