Although Broadcom has not disclosed specific clients, analysts suggest that major tech firms like Alphabet's Google and Meta Platforms are likely among its custom chip customers.

Marvell is recognized as Broadcom's main competitor in the custom chip market, which is projected to reach approximately $45 billion by 2028.

Both Broadcom and Marvell are expected to benefit from this expanding market, particularly due to the rising demand for AI clusters from hyperscale companies.

As the custom chip market continues to grow, both Broadcom and Marvell are well-positioned to capitalize on the opportunities presented by this trend.

On December 5, 2024, Broadcom announced the development of a new technology called 3.5D XDSiP, designed to enhance semiconductor speeds for AI processors amid increasing demand.

Broadcom's CEO, Hock Tan, revealed that the company's AI revenue forecast for fiscal year 2024 has been raised to $12 billion, reflecting the growing scale of AI clusters among hyperscale customers.

This innovative technology allows customers to boost memory capacity within packaged chips and improves performance by directly connecting critical components.

The company employs advanced manufacturing processes from TSMC, including chip-on-wafer-on-substrate techniques, which are currently constrained and represent a bottleneck in the AI chip supply chain.

These advanced manufacturing processes are critical as they support Broadcom's efforts to meet the rising demand for AI chips, despite their limited production capacity.

Tan noted that Broadcom has three primary customers for its custom processor unit, underscoring the increasing need for advanced AI infrastructure.

This revised forecast is an increase from an earlier estimate of $11 billion, highlighting the significant demand from major tech companies.

Broadcom is currently developing five products utilizing the 3.5D XDSiP technology, with production shipments slated to begin in February 2026.