Samsung Electronics has secured a landmark agreement with Broadcom valued at more than $200 billion through 2030 to manufacture and supply next-generation AI chips.
Announced during a high-profile AI summit in San Francisco attended by South Korean government representatives and industry executives, the five-year strategic memorandum of understanding deepens cooperation across contract chipmaking, memory supply, and advanced packaging solutions.
Manufacturing cutting-edge 2nm custom silicon
The collaboration focuses heavily on utilizing Samsung’s sub-2nm foundry process to produce Broadcom’s upcoming application-specific integrated circuits (ASICs) and Wireless Broadband Communications hardware.
Hyperscale tech companies are shifting away from relying solely on general-purpose GPUs in favor of tailored AI accelerators. So, Broadcom’s expertise in specialized networking chips makes this manufacturing partnership especially important for future data center infrastructure.
To complement logic production, Samsung will supply its high-bandwidth memory (HBM) products directly to Broadcom. The latter will integrate them into its next-generation AI accelerators, Reuters reports.
The deal also extends to advanced 2.3D and 2.5D packaging integration. This allows both companies to combine memory, logic, and high-speed communications chips into single, highly energy-efficient modules optimized for intensive high-performance computing workloads.
Strengthening foundry momentum against TSMC
The multi-year commitment delivers a massive operational boost to Samsung’s contract chipmaking division. It works to narrow the market share gap with industry leader TSMC.
Winning long-term production orders from a top-tier designer like Broadcom ensures high utilization rates across Samsung’s advanced manufacturing facilities. This further reinforces the company’s position in the competitive custom silicon space.
The deal highlights Samsung’s broader effort to capitalize on global demand for AI hardware. It follows others, such as a $16.5 billion contract to make logic chips for Tesla. There are also ongoing talks with Nvidia about future HBM4E and HBM5 memory.
By combining foundry capabilities with memory production under one roof, Samsung offers a complete end-to-end supply chain solution as South Korea works to double its national memory capacity and expand its global semiconductor footprint.
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