--- title: "Billions of dollars bet on customization! Meta deepens its binding with Broadcom chips, Chen Fuyang resigns from Meta's board to avoid suspicion" type: "News" locale: "en" url: "https://longbridge.com/en/news/282756050.md" description: "Meta and Broadcom expand their multi-billion dollar partnership to jointly design custom chips to support its artificial intelligence business, with the collaboration lasting until 2029. Broadcom CEO Hock Tan will step down from the Meta board to avoid conflicts of interest and will transition to a strategic advisor role. This partnership is expected to develop chips with over 1 gigawatt of computing power, with future plans to scale up to several gigawatts. The Meta board has also undergone significant changes, with former executive Tracy Travis also stepping down" datetime: "2026-04-14T23:51:02.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/282756050.md) - [en](https://longbridge.com/en/news/282756050.md) - [zh-HK](https://longbridge.com/zh-HK/news/282756050.md) --- # Billions of dollars bet on customization! Meta deepens its binding with Broadcom chips, Chen Fuyang resigns from Meta's board to avoid suspicion According to Zhitong Finance APP, Meta Platforms (META.US) announced an expansion of its multi-billion dollar partnership with Broadcom (AVGO.US), with both parties set to jointly design and manufacture custom chips to support the social media giant's artificial intelligence business layout. Under the agreement, the two companies will collaborate to develop multiple generations of Meta Training and Inference Accelerators (MTIA), with the cooperation framework lasting until 2029. Meanwhile, it was also disclosed that Broadcom CEO Hock Tan will officially step down from the Meta board after the term of the annual shareholder meeting. The two companies stated in a statement on Tuesday that this collaboration includes a commitment to develop chips that provide over 1 gigawatt of computing power. According to an informed source, this agreement is expected to be the first phase of a multi-billion dollar ongoing deployment plan, with plans to further scale up to several gigawatts with Broadcom's technical support. One gigawatt of power is enough to supply approximately 750,000 American households simultaneously. Alongside this significant business development announcement, Meta's board structure is also undergoing a key adjustment. Broadcom CEO Hock Tan announced that he will not seek re-election to the Meta board. Hock Tan joined the Meta board in early 2024, aiming to assist Meta in strengthening its hardware infrastructure and supply chain layout. However, as the scale of commercial exchanges between the two parties in the custom chip field has surged, Hock Tan chose to exit the decision-making level to avoid potential conflicts of interest and ensure transparency in corporate governance, transitioning to a strategic advisor for Meta's custom chip roadmap, continuing to provide in-depth guidance on technological evolution. Additionally, former Estée Lauder executive Tracey Travis will also step down after serving as a Meta director for six years. It is worth mentioning that Meta's board has undergone significant changes in recent years. At the beginning of last year, the company briefly announced five new directors, one of whom—former Trump advisor Dina Powell McCormick—has since left to fully participate in various AI infrastructure projects at Meta. It is understood that Broadcom has been collaborating with Meta to develop custom chips. This effort has become increasingly important for Meta, which is investing hundreds of billions of dollars to build infrastructure to compete in the AI race. Meta is developing its own chips to help reduce costs and decrease reliance on third-party suppliers like NVIDIA (NVDA.US) and AMD (AMD.US). Meta has committed to investing billions of dollars in these two chip manufacturers for the purchase of AI processors and other hardware. In terms of technological research and development, the collaboration between Meta and Broadcom is advancing to the forefront of the industry. The two parties plan to jointly develop the industry's first AI computing accelerator based on 2-nanometer (2nm) advanced process technology, significantly enhancing the energy efficiency and processing performance of data centers. Meta has planned a new series of four chip versions, including MTIA 300, 400, 450, and 500, aimed at optimizing the recommendation algorithms, content ranking, and large-scale inference tasks of its social platform through self-developed hardware Mark Zuckerberg stated in a statement: "Meta is collaborating with Broadcom in the fields of chip design, packaging, and networking to build the massive computing infrastructure we need to provide personal superintelligence to billions of people. As we initially deploy over 1 gigawatt of custom silicon chips and gradually scale up to multiple gigawatts over time, this collaboration will bring higher performance and efficiency to all the products we are building." For Broadcom, this deal marks the latest expansion of its custom artificial intelligence chip business, which aims to boost the company's revenue and investor enthusiasm while striving to become a viable alternative to Nvidia. Earlier this month, Broadcom disclosed a long-term agreement with existing client Alphabet's Google (GOOGL.US) to collaborate on TPU chips and supply these chips to the AI startup Anthropic PBC. Some details of the agreement had been discussed previously and are effective until 2031. Chen Fuyang stated in a statement that the initial phase of the agreement "is just the beginning of a multi-year, cross-generational roadmap aimed at serving the trajectory of massive growth in the coming years." Boosted by the news of the expanded collaboration agreement with Meta, Broadcom's stock price rose about 3.42% in after-hours trading. The stock closed at $380.78 on Tuesday, up 10% year-to-date. Meta's stock price remained relatively flat. Broadcom's stock has been active in the secondary market, reflecting investor optimism about the growth potential of Broadcom's ASIC (Application-Specific Integrated Circuit) business. Currently, Broadcom's custom chip business has become an important pillar of its annual revenue, and Meta, as its core client, will have a profound impact on the competitive landscape of the global AI semiconductor market through their deep partnership ### Related Stocks - [META.US](https://longbridge.com/en/quote/META.US.md) - [AVGO.US](https://longbridge.com/en/quote/AVGO.US.md) - [SOXL.US](https://longbridge.com/en/quote/SOXL.US.md) - [PSI.US](https://longbridge.com/en/quote/PSI.US.md) - [FBL.US](https://longbridge.com/en/quote/FBL.US.md) - [METU.US](https://longbridge.com/en/quote/METU.US.md) - [METW.US](https://longbridge.com/en/quote/METW.US.md) - [XSD.US](https://longbridge.com/en/quote/XSD.US.md) - [SMH.US](https://longbridge.com/en/quote/SMH.US.md) - [METD.US](https://longbridge.com/en/quote/METD.US.md) - [SOXX.US](https://longbridge.com/en/quote/SOXX.US.md) - [EL.US](https://longbridge.com/en/quote/EL.US.md) - [NVDA.US](https://longbridge.com/en/quote/NVDA.US.md) - [AMD.US](https://longbridge.com/en/quote/AMD.US.md) - [GOOGL.US](https://longbridge.com/en/quote/GOOGL.US.md) - [NVD.DE](https://longbridge.com/en/quote/NVD.DE.md) - [GOOG.US](https://longbridge.com/en/quote/GOOG.US.md) ## Related News & Research - [Meta extends custom chips deal with Broadcom to power AI ambitions](https://longbridge.com/en/news/282752154.md) - [Broadcom Announces Extended Partnership with Meta to Deploy Technology to Support Multi-Gigawatts of Meta’s Custom Silicon, MTIA | AVGO Stock News](https://longbridge.com/en/news/282745543.md) - [Options Remain Red-Hot on AI Favorite META](https://longbridge.com/en/news/282723936.md) - [Top UBS Analyst Sees Strong Upside in Broadcom Stock (AVGO). 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