[News] TSMC 1Q Profit Seen Up ~50% to Record; Meta–Broadcom AI Chips Reportedly Target 2nm, CoWoS-L in 1H27

Ahead of its earnings call later today, TSMC is poised to capture incremental orders from the newly announced Meta Platforms–Broadcom AI chip alliance. According to Commercial Times, the partners are targeting the launch of a self-developed chip based on TSMC’s 2nm process as early as 1H27, paired with the foundry’s CoWoS-L advanced packaging technology.

As reported by Reuters, under an expanded agreement, the social media giant will deploy custom-built AI processors as it accelerates efforts to scale the computing infrastructure. Announced Tuesday, the deal extends the partnership through 2029 and includes an initial commitment exceeding one gigawatt of computing capacity.

Meta Platforms’ first in-house chip under its Training and Inference Accelerator (MTIA) program—the MTIA 300—is already powering its ranking and recommendation systems. According to Reuters, three additional generations are planned through 2027, with later iterations increasingly optimized for inference workloads.

Notably, the Commercial Times reports that Meta’s first 2nm AI accelerator—manufactured by TSMC—is expected to feature a compute die designed by Broadcom and be paired with HBM4 memory. The initial version will adopt TSMC’s CoWoS-L advanced packaging, before migrating the design to SoIC (System on Integrated Chips) in the following year, combining a 2nm compute chip with a 3nm I/O stack, the report suggests.

According to Commercial Times, Meta Platforms introduced its first in-house AI chip, MTIA 100, in 2023, built on TSMC’s 7nm process. Its successor, MTIA 200, moved to the foundry’s 5nm node. Meanwhile, sources cited by Economic Daily News indicate that the MTIA 300 is likely being produced on TSMC’s 3nm or 4nm process.

TSMC’s Earnings Preview

As TSMC is set to release its first-quarter earnings on April 16, Reuters reports the company is on track to deliver a fourth straight quarter of record earnings, with net profit for January–March expected to jump around 50% on the back of surging demand for AI infrastructure.

Analysts cited by Reuters note that demand for TSMC’s 3nm process—critical for AI chip production—as well as its advanced packaging capabilities, continues to outpace available capacity, underscoring persistent supply tightness.

While TSMC already posted a 35% year-on-year surge in first-quarter revenue reported last week, the report suggests the foundry leader is set to report first-quarter net profit of NT$543.3 billion (US$17.23 billion).

A result exceeding NT$505.7 billion would mark the company’s highest-ever quarterly profit and extend its streak to a ninth consecutive quarter of earnings growth, the report adds.

Read more

• [News] Meta’s In-House AI Chip Push: Four New Accelerators Gear Up Amid Memory Crunch by 2027
• [News] NVIDIA’s Rubin Ultra Seen Sticking to Dual-Die Design on Packaging Constraints; TSMC 3nm Demand Intact

(Photo credit: TSMC)