JPM says Meta will become Broadcom's next billion-dollar customer | Reuters

A smartphone with Facebook’s logo is seen in front of displayed Facebook’s new rebrand logo Meta in this illustration taken October 28, 2021. REUTERS/Dado Ruvic/Illustration//File PhotoRegister now for FREE unlimited access to Reuters.comMay 31 (Reuters) – Facebook parent Meta Platforms Inc (FB.O) will use Broadcom Inc’s (AVGO.O) custom chips to build its metaverse hardware, becoming the chipmaker’s next billion-dollar ASIC customer, analysts at J.P. Morgan said on Tuesday.ASIC (application-specific integrated circuit) chips will drive $2 billion to $2.5 billion in revenue for Broadcom this year, helped by its deals with Meta and partnerships with Alphabet (GOOGL.O) and Microsoft (MSFT.O), the analysts said.”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,” analyst Harlan Sur said.Register now for FREE unlimited access to Reuters.comMeta is investing heavily in the metaverse – a virtual space where people interact, work and play – by adding new features to hardware devices that serve as access points to the virtual world.Sur added that Meta will emerge as Broadcom’s next $1 billion-a-year ASIC customer over the next three to four years after Google.ASICs are designed to…
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