Industry sources say OpenAI has reserved initial production capacity for TSMC's new Angstrom A16 manufacturing process to develop custom AI chips.
The company is reportedly investing in proprietary ASIC (Application-Specific Integrated Circuit) designs to meet growing computational needs for its AI models.
Now, Taiwan's Economic Daily reports OpenAI will likely partner with US firms Broadcom and Marvell on chip development. OpenAI is set to become one of Broadcom's top four customers. Broadcom is also working on AI chips with ByteDance and Google; however, that might change.
As longtime TSMC clients, Broadcom and Marvell will manufacture OpenAI's ASIC designs using TSMC's 3nm and subsequent A16 processes. Mass production is slated to begin in Taiwan in late 2026. OpenAI has already reserved A16 production capacity for this effort, Economic Daily reports, citing industry circles.
Earlier plans for a dedicated OpenAI chip factory with TSMC are on hold. TSMC CEO C.C. Wei called OpenAI CEO Sam Altman's proposals "too aggressive," citing concerns about facility utilization rates.
Apple among first customers for TSMC's A16
Apple has also secured early access to TSMC's A16 process for future iPhones. While Apple and OpenAI collaborate on Apple Intelligence, their partnership currently focuses on software.
In January 2024, reports surfaced that Altman was planning a global chip manufacturing network, with TSMC among potential partners. One of the investors in such a massive project could be Abu Dhabi's MGX.
