Meta to Start Manufacturing Iris AI Chip in September

Meta Platforms, Inc. (NASDAQ:META) plans to begin manufacturing its in-house AI chip, codenamed Iris, in September 2026, according to a Reuters report on July 9. The company is working with Broadcom (AVGO) on chip design and Taiwan Semiconductor Manufacturing Company (TSMC) on production.

The Product

The Iris chip is part of Meta's strategy to bolster its AI infrastructure by developing custom chips tailored to its needs. The chip is expected to be deployed in Meta's data centers to support AI applications such as content recommendation and advertising.

Pricing and Availability

Meta has not disclosed pricing details or a commercial rollout timeline. The chip is likely to be used internally initially before being offered to customers.

Competition

Meta faces competition from companies like NVIDIA (NVDA) and AMD (AMD) in the AI chip market. However, the in-house chip could reduce Meta's reliance on external suppliers.

Potential Impact on the Company

Developing the Iris chip could lower costs in the long run and improve the performance of Meta's AI applications. It also enhances the company's supply chain independence.