Custom Chip Designers’ ASIC Revenue Seen Doubling in 2027, Again in 2028 as TSMC Bottleneck Eases

aiai-infrastructureai-compute-chips 2 posts · 2 accounts

A media report said ASIC chip revenue for custom chip designers including Broadcom, MediaTek, Alchip and Global Unichip may double in 2027 and then double again in 2028, as demand from major cloud companies including Google and Amazon continues to rise and TSMC’s capacity shortage eases. Google’s TPU program is expected to contribute far more to Broadcom and MediaTek in 2027 and 2028 than it does now, the report said.

The outlook remains tied to manufacturing and packaging availability. Shipments of MediaTek’s 2nm TPU project in 2028 are seen rising nearly twofold if it secures TSMC capacity and Intel EMIB, while Alchip’s chairman described TSMC’s 3nm shortage as worse than the memory shortage; after 2027, the capacity bottleneck is expected to ease.

From the sources (2 posts)

@dnystedt

ASIC chip revenue may double in 2027, then double again in 2028 for custom chip designers like Broadcom, MediaTek, Alchip, Global Unichip, media report, as demand from several major Cloud firms, including Google and Amazon, continues to ris

@aaronwei3n

" $TSM ’s 3nm capacity shortage as worse than the memory shortage."

Market impact

28 small

AVGO TSM GOOGL AMZN

Why it matters: A media/sell-side forecast that custom-ASIC revenue (Broadcom, MediaTek, Alchip) doubles in 2027 and again in 2028 on hyperscaler TPU demand and easing TSMC capacity supports the custom-silicon thesis, a mild positive for AVGO and TSM, but it is a multi-year projection rather than a fresh catalyst.

At publish time: Headline is an explicit forward revenue forecast ("doubling in 2027, again in 2028") sourced to a media report, naming Broadcom/MediaTek/Alchip and Google/Amazon demand plus TSMC bottleneck easing.

model confidence: medium

What happened next

1–2 weeks later

played out moved up

TSMC repeatedly reaffirmed AI demand outstripping supply for years with 30%+ growth and record foundry share; custom-chip programs expanded, supporting the ASIC/TSMC thesis.

based on follow-up coverage

Follow-up coverage

May 31

Nvidia to Top 20% of TSMC Revenue This Year, Remain Top Customer

matched on: revenue, tsmc
Jun 1

TSMC Takes Record 73.6% Foundry Revenue Share as Industry Hits $48.8 Billion in Q1

matched on: revenue, tsmc
Jun 4

TSMC Sees Chip Supply Falling Short of AI-Fueled Demand for Years, Keeps Revenue Growth Above 30%

matched on: chip, revenue, tsmc
Jun 4

TSMC Says More US Capacity Won’t Meet AI Chip Demand for Years

matched on: chip, tsmc
Jun 4

TSMC Warns AI-Driven Chip Demand Will Outstrip Supply for Years, Keeps 30% Sales Growth Forecast

matched on: chip, tsmc
Jun 5

TSMC Warns AI Demand Will Outstrip Chip Supply for Years, Keeps 30%-Plus Growth Forecast

matched on: chip, tsmc
Jun 6

Anthropic Hires Clive Chan From OpenAI’s Custom Chip Program

matched on: chip, custom
Jun 8

South Korea to Unveil Large Investment Project Using Chip Tax Revenue

matched on: chip, revenue

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