Microsoft is reportedly in discussions with Broadcom to take over the design of its specialized chips, a role currently held by Marvell Technology. This potential collaboration would focus on custom silicon for Microsoft's Azure cloud services and its expanding artificial intelligence infrastructure. Such a move aligns with a broader industry trend of major tech companies seeking to diversify their supply chains and reduce reliance on single suppliers for critical components. The talks signify a major potential realignment in the semiconductor landscape and underscore Microsoft's commitment to enhancing its in-house chip capabilities to better compete with rivals like Amazon and Google, who have also been investing heavily in custom silicon. While the discussions are ongoing, a partnership with Broadcom could lead to significant advancements in the performance and efficiency of Microsoft's data centers. No definitive market reaction is available as of yet.
Microsoft in Discussions with Broadcom for Custom Chip Design, Potentially Replacing Marvell