Meta to Launch Iris AI Chip Production in September to Boost Computing Power

In a move reflecting the accelerating technological arms race, Meta Platforms is preparing to begin production of its latest custom AI chip, 'Iris', at TSMC facilities this September. According to reports, the company aims to double its total computing capacity to 14 gigawatts by 2027, seeking to reduce reliance on expensive external GPUs. Leaked memos also indicate that Meta has secured long-term supply contracts with Samsung, Sandisk, and Sumitomo Electric to bolster its infrastructure development.

Meta's shift toward in-house silicon comes as the industry faces mounting pressure over massive capital expenditure (Capex) projections, which could hit $145 billion by 2026. In comparison to peers, market data shows NVDA, the primary GPU supplier, closed at $202.78, while MSFT stood at $384.36 (close July 9, 2026). Tech giants like Meta and Alphabet are increasingly developing sovereign hardware solutions to compete with established chipmakers such as AMD and AVGO to optimize operational costs.

Regarding market performance, META shares closed at $631.48, while TSM reached $436.96 (close July 9, 2026). Investors are closely monitoring whether these hardware investments will improve margins despite initial spending concerns. Looking ahead, traders will focus on the U.S. Balance of Trade data on July 7, which may provide insights into the costs of imported tech components amid ongoing trade dynamics.