Prime Highlights-
- Meta will begin producing its new Iris AI chip in September, marking a major milestone in its in-house chip development strategy.
- Chip testing wrapped up in just six weeks with no major issues, pointing to strong momentum for Meta’s AI hardware plans.
Key Facts-
- Broadcom is supporting the design of the Iris AI chip, while Taiwan Semiconductor Manufacturing Co will lead production.
- Meta has locked in long-term supply deals with Samsung Electronics, Sandisk and Sumitomo Electric to power its 2027 growth plans.
Background-
Meta Platforms Inc. is set to launch production of its new Iris chip in September, a milestone move in the company’s push to build its own hardware. The chip supports Meta’s plan to expand computing capacity to 14 gigawatts by 2027, doubling what it has today.
Iris is one of four chips under Meta’s in-house Training and Inference Accelerators program, developed to power the AI systems behind Facebook and Instagram. The chip passed testing in just six weeks with no major issues found, a strong early result for the initiative.
Broadcom Inc. is helping design the Iris chip, while Taiwan Semiconductor Manufacturing Co will manage production. The custom-built approach should give Meta more control over computing costs and a stronger position in the hardware space.
Meta plans to launch a new chip roughly every six months through 2027, faster than the industry’s typical yearly pace. This year, the company is on track to add seven gigawatts of computing power, having already added one gigawatt in the first half, with 5.5 gigawatts more expected by year end.
To keep up with this growth, Meta secured long-term supply agreements with Samsung Electronics for memory chips, Sandisk for flash storage, and Sumitomo Electric for fiber-optic equipment, laying strong groundwork for its data center expansion.
Mike Gualtieri, vice president and principal analyst at Forrester, said companies aiming to lead in artificial intelligence are increasingly building their own chips to stay competitive on cost. He added that in-house chip development has become a key part of how major tech firms plan for long-term growth.
Meta shares gained 4.6% in late afternoon trading following the announcement, reflecting positive market reception to the news.
