broadcom ai chip supply chain ecosystem

broadcom’s custom ai chip business requires a supply chain spanning equipment manufacturers, materials suppliers, foundries, and packaging specialists. this ecosystem supports the $10 billion openai partnership and other hyperscaler engagements.

tier 1: foundry and fabrication

tsmc - primary manufacturing partner

tsmc provides broadcom’s advanced node production:²

alternative foundries

• samsung foundry: 3nm gaa process, yield challenges
• intel foundry services: 18a node in development, limited external capacity
• smic: 7nm maximum, china-only

tsmc dependency creates supply chain risk.

tier 2: memory suppliers

sk hynix - hbm market leader

sk hynix controls high-bandwidth memory supply:³

• market share: 46-49% of global hbm market
• technology: hbm3e 12-layer, 1.18 tb/s bandwidth
• capacity: sold out through 2025, premium pricing
• proprietary tech: mr-muf packaging (45% better heat dissipation)
• expansion: m15x fab construction, production q3 2026

samsung memory - secondary supplier

• products: competitive hbm3e offerings
• role: supply chain redundancy for broadcom
• capacity: also constrained through 2025
• market share: ~40% of hbm market

micron technology - emerging player

• status: ramping hbm3e production
• timeline: meaningful volumes expected 2026
• advantage: us-based manufacturing option

tier 3: packaging partners

ase technology holdings

largest osat providing broadcom packaging services:¹

• capability: 2.5d cowos packaging
• capacity share: 40-50% of tsmc’s outsourced cowos-s
• investment: nt$4.1b+ in new facilities
• k28 facility: kaohsiung completion 2026
• revenue: $19b packaging/test revenue (2024)

amkor technology

us-based packaging partner:¹

• arizona facility: new plant near tsmc arizona
• technology: h-cube packaging, 2.5d tsv
• capacity: 70,000-80,000 units annually
• partnership: direct cooperation with tsmc

siliconware precision industries (spil)

ase subsidiary with specialized capabilities:

• focus: high-end cowos front-end processes
• investment: nt$3.7b yunlin expansion
• capacity: 50,000-60,000 units annually

tier 4: equipment suppliers

lithography - asml position

asml controls euv lithography:⁴

process equipment ecosystem

tokyo electron identifies tsmc as primary customer, maintains 10-year technology roadmap visibility.⁵

hbm equipment

hbm production equipment:⁶

• towa corporation: resin compression molding (22 units to korea fy2023)
• disoc: wafer grinding and cutting equipment
• advantest: hbm testing systems
• hanwha semitech: thermal compression bonding (tcb) machines

tier 5: materials and chemicals

silicon wafer suppliers

wafer production uses high-purity polysilicon and quartz crucibles via czochralski process.⁷

photoresist and specialty chemicals

chemicals for advanced lithography:⁸

• jsr corporation: euv photoresists for sub-10nm, new r&d facility 2025
• entegris: partnership with lam for euv photoresist precursors
• basf: expanded korea r&d center, euv materials with shin-etsu
• air liquide: diborane production, specialty gases (nf3, fluorine)
• dow chemical: specialized polymers and solvents
• merck kgaa: photoresists and process chemicals

photoresist market: $12.17 billion in 2025, 9.3% cagr.⁸

advanced materials

• Non-conductive film (ncf): critical for hbm packaging
• thermal interface materials (tim): heat dissipation for high-power chips
• underfill materials: package reliability and thermal management
• substrate materials: abf (ajinomoto build-up film) for package substrates

tier 6: design tools and ip

eda tool oligopoly

three companies provide chip design software:⁹

broadcom partners with all three for multi-billion transistor designs.

ip licensing ecosystem

• arm: cpu cores and interconnect ip
• synopsys/cadence: interface ip, memory compilers
• imagination technologies: gpu and ai accelerator ip
• ceva: dsp and ai processor ip
• rambus: high-speed interface ip

supply chain risks and mitigation

single points of failure

pricing dynamics 2025-2026

cost increases 2025-2026:

• cowos packaging: +10-20% price increase¹
• silicon wafers: rising due to capacity investments
• hbm memory: sold out through 2025, premium pricing
• euv lithography: $200m+ per system, multi-year waitlists
• eda licenses: 15-20% annual increases

geographic concentration risks

• taiwan: 50% of global foundry capacity, 90% of advanced nodes
• japan: materials and equipment (60% of specific categories)
• korea: memory production (70% dram, 60% nand)
• netherlands: asml euv monopoly
• china: rare earth elements

investment and capacity expansion

capacity expansions

supply chain financing

investment requirements:

• new fab: $15-20 billion for advanced node facility
• packaging facility: $1-3 billion for advanced packaging
• equipment orders: 18-24 month lead times, 30% deposits
• working capital: 90-120 day payment terms standard

strategic implications

for broadcom

supply chain requirements:

• multi-year tsmc capacity reservations
• materials inventory management
• tier partnerships
• $500m+ upfront per program
• 18-24 month planning cycles

industry transformation

broadcom model characteristics:

• idm to ecosystem shift
• system integration focus
• packaging innovation
• supply chain differentiation
• partnership-based integration

future evolution

developments 2026-2028:

• equipment/materials consolidation
• packaging entrants (intel, globalfoundries)
• alternative technologies (optical interconnects, 3d structures)
• supply chain regionalization
• ai-optimized equipment

references

[1] trendforce. (2025, november 4). tsmc’s cowos prices may rise 20%; ase and amkor compete for outsourcing orders.

[2] trendforce. (2025, september 1). 2q25 foundry revenue surges 14.6% to record high, tsmc’s market share hits 70%, says trendforce.

[3] anandtech. (2025). sk hynix reports that 2025 hbm memory supply has nearly sold out.

[4] the motley fool. (2022). 2 growth stocks that could win big from tsmc’s $40 billion spending plan.

[5] bismarck analysis. (2025). tokyo electron’s place in global semiconductor manufacturing.

[6] digitimes. (2024, april 24). japanese materials and equipment suppliers gaining from hbm expansion drive.

[7] electronics and you. (2025). top 10 global silicon wafer manufacturers 2025.

[8] gii research. (2025). photoresist electronic chemical global market report 2025.

[9] edn. (2025). eda’s big three compare ai notes with tsmc.