TLDR
- Broadcom ships first 2nm 3.5D compute SoC, marking a packaging milestone.
- First 2nm XDSiP chip ships to Fujitsu, boosting AI and HPC throughput goals.
- 3.5D XDSiP blends 2.5D + 3D to raise density and cut power for XPUs.
- Face-to-Face stacking lifts bandwidth and lowers latency for data-center builds.
- Broadcom targets wider 2H 2026 customer shipments as AI ASIC demand expands.
Broadcom (AVGO) shares moved lower after the company confirmed shipments of its first 2nm custom compute chip built on its 3.5D platform. The stock traded at $321.87, down 3.14%, after a sharp morning slide and a steady rebound. The development signaled a new phase in advanced semiconductor packaging for high-performance computing.
Broadcom Begins Shipping First 2nm Compute SoC
Broadcom started volume shipments of its custom compute SoC that uses the 3.5D XDSiP platform. The platform integrates 2.5D and 3D technology to boost compute density and power efficiency. The company expanded the platform in 2024 and continues to target complex XPUs for next-generation workloads.
The new chip supports AI and HPC systems that demand higher throughput and tighter integration. Broadcom uses Face-to-Face stacking to increase bandwidth while reducing latency. The approach also allows compute, memory and network I/O components to scale independently.
Broadcom delivered the first unit to Fujitsu as part of a wider collaboration. The company views the SoC as a step toward more efficient data-center hardware. The design supports growing demand for compact and low-power processors.
Fujitsu Integrates the Chip Into Its High-Performance Roadmap
Fujitsu will use the chip within its advanced processor initiative. The company aims to build high-performance systems that rely on efficient semiconductor layouts. It expects the platform to unlock new gains in compute density.
The program supports workloads across large AI clusters and advanced simulation tasks. Fujitsu continues to expand its semiconductor strategy as demand for precision compute rises. The new chip aligns with plans for scalable architectures.
The partnership extends an earlier agreement on next-generation hardware. Broadcom highlights the collaboration as a proof of execution in complex ASIC delivery. Shipments for broader customers remain scheduled for the second half of 2026.
Broadcom Strengthens Position With New Products and Market Developments
Broadcom holds a market value of $1.58 trillion and maintains strong margins. The company reported nearly 24% revenue growth during the past year. The latest shipment supports its wider move into advanced AI compute.
The company also introduced its BroadPeak chip for 5G and 6G systems. The product targets lower power use and stronger radio performance. Broadcom expects demand to grow as upgrades in wireless networks expand.
Market analysts recently issued mixed views on the stock. One firm reaffirmed a Buy rating based on TPU demand. Another firm started coverage with a Neutral stance due to long-term AI ASIC competition.
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