Comment by HarHarVeryFunny
10 hours ago
I just read a claim on Twitter that the reason these companies (Google and Amazon as well as OpenAI) are using Broadcom isn't just for design expertise, but because Broadcom have allocation agreements in place with TSMC and the memory manufacturers.
...and because most hardware sales except AI accelerators are down due to RAM prices, Broadcom probably can't otherwise use their allocation at TSMC.
Nope, not down. "total Personal Computing Device (PCD) market — comprising traditional PCs and tablets — posted 2.8% year-over-year growth in Q1 2026, with combined shipments reaching 103.3 million units. PC shipments grew 3% YoY with 65.6 million units" https://www.idc.com/promo/pcdforecast/
Q2 is forecasted to be negative, partly because of RAM prices like you said, but for the most part this is something that only price sensitive nerds care about. Broadcom sells a ton of server chips. Server sales are up 30% vs last year so I highly doubt they're desperate to use their allocation
I was actually thinking of smartphones first because they seem to be the best-selling "personal computing devices" (different definition from IDC) and come with a lot of RAM (8-16 GB or so? Mine has 12) these days. And there I confused Broadcom with Qualcomm - Qualcomm's biggest end customers seem to be smartphone buyers.
I thought of PCs second since most chip manufacturers make some thing or another that goes into them (Broadcom probably more than Qualcomm), and yes it's very suprising that PC sales don't seem to be down yet.
According to your own source
> the full-year 2026 [PCD] outlook has been revised to −10.4% year-over-year
because
> erosion of consumer purchasing power amid regional inflation and currency volatility in many key markets, compounded by memory and storage shortages that are proving more severe than anticipated in the previous forecast cycle.
The positive Q1 YoY growth
> was largely the product of pull-forward demand, as both consumer and commercial buyers accelerated purchases ahead of anticipated price increases and limited product availability.
The idea that only nerds care about the cost of things is... absurd.
Most design partners have allocation agreements. The thing is Broadcom is an absolute GIANT in the ASIC design space, and it's closest competitor Marvell is a fraction of it's size.
There are a lot of large tech companies that most of HN has never heard about that completely dominate entire segments.
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