[News] Broadcom Targets $115B AI Revenue in FY27, Nearly 2X FY26; Singapore Fab to Ease Key Substrate Bottleneck
While Broadcom’s near-term guidance fell slightly short of market expectations, its outlook beyond fiscal 2026 points to accelerating AI growth. The chipmaker raised its fiscal 2026 AI semiconductor revenue forecast to $58 billion from $56 billion, and expects the figure to nearly double to $115 billion in fiscal 2027 before doubling again to $230 billion in fiscal 2028, according to Reuters and Commercial Times.
At the same time, Broadcom is bracing for supply constraints in 2027, particularly around substrates. CEO Hock Tan said on an Investing.com earnings call transcript that the company plans to begin producing substrates at its Singapore fab in fiscal 2027 to help ease supply bottlenecks.
Google TPU Momentum Builds as Ironwood, TPU 8i Ramp
Broadcom’s upbeat outlook, highlighted by Reuters, is backed by solid visibility into customer demand. The company already sees additional AI infrastructure deployments through 2028, including more than 10 GW for Anthropic, over 5 GW for OpenAI and 3 GW for Meta. According to Tan, Broadcom has secured sufficient supply to support its higher AI revenue forecast for next year, the report adds.
Broadcom is indeed seeing continued momentum across its ASIC business, with major customers moving toward larger deployments. CNBC reports that it expects to accelerate shipments of Google’s Ironwood TPUs to Anthropic and TPU 8i chips to Google, with annual processor deliveries to Google expected to reach tens of billions of dollars over the next several years.
Jalapeno shipments to OpenAI will continue, while Meta is expected to begin production shipments of its custom MTIA accelerator, designed for large-scale inference and recommendation workloads, Tan said.
For 4QFY26, Broadcom expects revenue of about $34.8 billion, slightly below analysts’ $35.03 billion consensus, Reuters reports. The forecast follows a stronger-than-expected third quarter, with revenue reaching $29.59 billion versus $29.36 billion expected, while adjusted EPS came in at $3.32, ahead of the $3.24 estimate, the report notes.
Challenges and Bottlenecks
However, Broadcom also faces growing competition from rivals such as MediaTek. Starting with Google’s TPU v8t, codenamed “Zebrafish,” MediaTek is reportedly handling I/O design services and backend design, according to Commercial Times. Supply-chain sources cited by the report expect MediaTek to retain those roles for the TPU v9t, slated for launch in the fourth quarter of 2027.
Meanwhile, surging AI demand is tightening Broadcom’s supply chain, with capacity at its key foundry partner TSMC remaining constrained for advanced nodes and CoWoS packaging. To diversify its manufacturing base, Broadcom signed a multiyear memorandum of understanding with Samsung Electronics in July, reportedly worth more than $200 billion, Reuters notes.
Looking ahead to fiscal 2027, CEO Hock Tan, in the Investing.com transcript, said Broadcom faces bottlenecks across the supply chain, from land, power and data-center shells to leading-edge silicon, substrates and memory. He described managing these constraints as a “constant” challenge, joking that he is glad Broadcom has only six customers to manage.
As Broadcom highlights substrates as a key constraint, Tan said Broadcom teams up with one of its partners to build its own substrate capacity at scale in the factory in Singapore, which is coming online in FY27.
As reported by Taipei Times in July, Taiwan’s Powertech Technology plans to invest $400 million to form a joint venture with Broadcom in Singapore, which will focus on additive, finer-geometry redistribution layer (RDL) technology for advanced package substrates. According to the report, RDL is a key tech in fan-out panel-level packaging (FOPLP), routing electrical connections beyond the footprint of the silicon die.
In addition, Tan said Broadcom is more than tripling year over year its EML continuous-wave (CW) and vertical-cavity surface-emitting laser (VCSEL) production capacity, as well as its indium phosphide capacity, across facilities in the U.S. and Singapore.
Read more
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(Photo credit: Broadcom)
