Broadcom CEO Hock Tan says hyperscaler internal AI chip projects face extreme challenges in packaging and volume yields

Broadcom CEO Hock Tan addressed the threat of hyperscalers moving to internal customer-owned tooling (COT) models for AI chips. Tan argued that Broadcom's 20-year history in silicon design, proprietary SerDes technology, advanced packaging expertise, and ability to achieve high-volume production yields create a significant moat. He emphasized that LLM developers need chips competitive with Nvidia and that lab-scale designs are insufficient for mass production of 100,000+ units at affordable yields.