WSJ Tech News Briefing: TNB Tech Minute — OpenAI and Broadcom Strike Chip-Development Deal

Date: October 13, 2025
Host: Zoe Culkin, The Wall Street Journal

Episode Overview

This “TNB Tech Minute” delivers a concise update on major events shaping the tech landscape. Today’s focus: OpenAI’s significant partnership with Broadcom to develop custom AI chips, the Dutch government’s takeover of a Chinese-owned chipmaker, and LG Electronics’ financial performance amid global headwinds.

Key Discussion Points & Insights

1. OpenAI & Broadcom’s Strategic Chip-Development Partnership

Time: 00:42 – 01:25

• Announcement:
  OpenAI and Broadcom are joining forces to co-develop and deploy 10 gigawatts of custom AI chips and computing systems over four years.
• Purpose:
  The deal is designed to address OpenAI’s spiraling demand for computational power, essential for training and operating its cutting-edge AI models.
• Deployment Timeline:
  Broadcom will begin rolling out the new chips in the second half of 2026.
• Financial Impact:
  Although official figures were withheld, sources indicate the agreement is worth “billions of dollars”.
• Takeaway:
  This move points to intensified collaboration between AI technology innovators and chip manufacturers as the industry grapples with supply chain constraints and soaring demand.

“OpenAI and Broadcom are partnering up to develop and deploy 10 gigawatts of custom AI chips and computing systems over the next four years, a deal aimed at satisfying some of the AI startup’s growing computing needs.”
— Zoe Culkin, [00:44]

2. Dutch Government Nationalizes Chipmaker Nexperia

Time: 01:25 – 01:55

• Action:
  The Dutch government has taken control of Nexperia, a Netherlands-based chipmaker, from Chinese owner Wingtech Technology.
• Reasoning:
  Officially attributed to “signals of governance shortcomings and actions within the company,” though no specific details were given.
• Broader Context:
  This reflects ongoing international tensions over control of critical tech materials, especially against the backdrop of growing concerns about supply chain security and technological autonomy.
• Wingtech’s Response:
  Wingtech labeled this intervention as “excessive... based on geopolitical bias.”

“The Dutch government has taken control of a Netherlands-based chip maker, Nexperia, from its Chinese owner, Wingtech Technology... The unusual move reflects the growing tensions over control of materials that are crucial to various technologies, from cars to artificial intelligence.”
— Zoe Culkin, [01:26]

3. LG Electronics Beats Market Expectations Despite Challenges

Time: 01:55 – 02:25

• Financial Performance:
  LG forecasts an 8.4% decline in quarterly operating profit (smaller than analysts expected) and a 1.4% drop in revenue, still outperforming consensus.
• Business Segments:
  • Home Appliance: Maintained competitiveness despite tough market.
  • Vehicle Components: Achieved record profitability, highlighting diversification success.
• Stock Market Reaction:
  LG shares rose 2% post-announcement, reducing year-to-date losses to under 4%.
• Industry Context:
  LG’s resilience is notable amid higher tariffs and sluggish global demand, signaling relative strength in a difficult environment.

“LG Electronics guided for quarterly operating profit to fall by 8.4%, a smaller decline than market consensus, largely due to solid performance by its key affiliates amid difficult business conditions...”
— Zoe Culkin, [01:57]

Notable Quotes & Memorable Moments

• On AI Chip Demand:
  “A deal aimed at satisfying some of the AI startup’s growing computing needs.” — Zoe Culkin, [00:47]
• On Geopolitics and Chips:
  “The unusual move reflects the growing tensions over control of materials that are crucial to various technologies, from cars to artificial intelligence.” — Zoe Culkin, [01:29]
• On Industry Resilience:
  “Shares of the company rose 2% after the guidance, cutting its year-to-date losses below 4%.” — Zoe Culkin, [02:23]

Timestamps — Key Segments

• 00:42 — OpenAI & Broadcom’s chip-development partnership revealed
• 01:25 — Dutch government nationalizes Nexperia
• 01:55 — LG Electronics’ profit guidance beats expectations

Summary

This episode spotlights the increasing importance of chip supply and development amid surging AI needs, geopolitical competition, and a challenging macroeconomic environment. Strategic partnerships like OpenAI-Broadcom set the pace for the industry, while government interventions and resilient corporate performance from players like LG showcase the complexity and dynamism of the global tech sector.