Meta to Start Production of In-House AI Chip in September, Internal Memo Shows

Meta Platforms will begin manufacturing its own artificial intelligence chip in September as it pushes to dramatically expand its computing power and reduce its reliance on third-party suppliers, according to an internal memo reviewed by Reuters.

The move signals progress in a long-running internal effort to develop custom silicon tailored for the AI workloads that power its Facebook and Instagram platforms.

Project 'Iris' and In-House Silicon

The chip, codenamed "Iris," is part of a multi-generation project for Meta's Training and Inference Accelerators (MTIA). The memo, which noted that a six-week testing phase for the chip found no major issues, stated the goal is to augment the large quantities of GPUs the company purchases from market leaders like Nvidia and AMD.

By developing its own accelerators, Meta aims to gain more control over its hardware roadmap and lower its massive computing costs. The company is working with Broadcom to help design the chip and with Taiwan Semiconductor Manufacturing Co (TSMC) for its fabrication. "You can’t become an AI titan if you are dependent on another company for chips," said Mike Gualtieri, a vice president and analyst at Forrester, in a comment on the strategy.

Aggressive Infrastructure Expansion

The custom chip initiative is a component of a much larger infrastructure build-out. According to the memo, Meta plans to deploy 7 gigawatts of computing infrastructure this year and intends to double that capacity to a total of 14 gigawatts by 2027.

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To reach its 2026 goal, the company added 1 gigawatt of power in the first half of the year and forecasts adding another 2.5 gigawatts by year-end. This expansion is part of a capital expenditure plan for AI infrastructure that could reach as much as $145 billion this year.

Securing the Supply Chain

To support its ambitious data center growth amid intense global demand for components, Meta has secured several long-term, multi-year supply agreements. The memo detailed deals with key suppliers, including:

• Samsung Electronics for memory chips
• Sandisk for flash storage
• Sumitomo Electric for fiber-optic equipment

These agreements are critical as tech companies race to expand data centers, leading to supply constraints and rising prices for essential hardware, a phenomenon some Morgan Stanley analysts have referred to as "chipflation."