Tech giants such as Google, Meta, Amazon, and Microsoft are pouring billions into custom artificial intelligence chips, moving away from off-the-shelf solutions. Broadcom dominates the AI ASIC design services market with a 60-70% share and reported AI semiconductor revenue of $16.7 billion in fiscal Q3 2026, up 221% year over year. Marvell expects its custom business revenue to reach $30 billion by fiscal 2031, driven by a partnership with Google representing potentially $120 billion in cumulative agreements. TSMC saw revenue grow 53% year over year in August 2026, fueled by demand for AI-related wafers. Custom AI ASIC shipments are projected to grow 44.6% in 2026 and capture 27.8% of the AI server market, eating into Nvidia’s market share that is expected to fall from around 70%.
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