Broadcom and Marvell to Lead the Next Phase of the Custom AI Chip Market
Reports say Broadcom and Marvell are in a leading position in the next phase of AI infrastructure investment as major technology companies design custom AI chips to cut costs. The two companies control approximately 95% of the co-design market for custom AI ASICs.
After NVIDIA drove AI demand with a focus on high-performance AI chips, major technology companies began designing custom chips in-house to reduce costs. Amid this shift, Broadcom and Marvell are reported to be set to play important roles in the next phase of AI infrastructure investment.
The report said Broadcom and Marvell control approximately 95% of the co-design market for custom AI ASICs. Co-design refers to the process in which customers and chip designers jointly design and verify chips.
Custom chips are expected to rapidly increase their share of the AI server computing market. The article said custom chips are forecast to account for 2026 of the AI server computing market by 27.8%, and that this growth rate is 3 times faster than that of commercial GPUs.
Broadcom and Marvell are involved in customer-specific designs based on their ASIC design capabilities and data center networking solutions. Both companies support their customers’ customized chip development by providing design tools, IP, and verification services.
The report pointed out that the growing share of customized chips will change the structure of investment in AI infrastructure. The article explained that the expansion of customized chips represents a shift in design and manufacturing methods compared with commercial GPUs.
In conclusion, the report identified Broadcom and Marvell as key players in the next stage of AI infrastructure. The two companies’ market share figures and 2026year forecasts were presented as grounds for the expanding adoption of customized ASICs.
Sources: The Motley Fool
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