Dec 5 Reuters Broadcom said on Thursday its custom chip unit, which makes AI processors for cloud providers, has developed new technology to enhance semiconductor speeds amid escalating demand for generative artificial intelligence infrastructure.

Palo Alto, Californiabased Broadcom is among the biggest beneficiaries of hefty demand for AIsupporting hardware, as socalled hyperscalers turn to its custom chips to diversify their supply chains beyond Nvidia39;s costly processors.

The technology, called 3.5D XDSiP, will allow Broadcom39;s customchip customers to boost the amount of memory inside each packaged chip and speed up its performance by directly connecting critical components.

To do this, it uses manufacturing processes from TSMC, the world39;s largest contractchip producer, including chiponwaferonsubstrate techniques also known as advanced packaging capacity for which is limited, making it a key bottleneck in the supply chain for AI chips.

There are five products in development that use the new tech, with production shipments starting in February 2026, Broadcom said.

While Broadcom does not identify the cloud companies it is developing custom chips for, analysts widely believe tech giant Alphabet39;s Google and Facebookowner Meta Platforms are among its customers.

Our hyperscale customers continue to scale up and scale out their AI clusters, Broadcom CEO Hock Tan said in September, when the company raised its forecast for AI revenue to 12 billion for fiscal…