Samsung Electronics inks $200 billion AI chip partnership with Broadcom

Samsung Electronics announced a significant partnership with U.S. chip designer Broadcom, aiming to deepen cooperation across memory chips, contract chip making, and advanced packaging. This strategic pact, projected to exceed $200 billion in value through 2030, is expected to enhance Samsung's foundry business and its competitive edge in the AI chip market. By securing long-term production commitments from Broadcom, a leader in custom AI chip design, Samsung seeks to increase the utilization of its advanced manufacturing facilities. The collaboration underscores Samsung's commitment to providing comprehensive semiconductor solutions for diverse AI and high-performance computing applications. It reflects a global trend where technology companies increasingly develop custom AI accelerators, driving demand for specialized chip design and manufacturing partnerships. The agreement highlights Samsung's efforts to strengthen its position in AI semiconductors by expanding its relationship with Broadcom amid surging demand for custom AI processors. Over the next five years, the partnership will integrate Broadcom's expertise in designing application-specific integrated circuits (ASICs) with Samsung's manufacturing prowess. Broadcom's next-generation communication chips, designed for high-speed data transfer, will be produced using Samsung's sub-2-nanometer process technology. The two companies will also collaborate on next-generation high-bandwidth memory (HBM) products. This alliance could bolster Samsung's foundry business as it strives to close the gap with industry leader TSMC by attracting major technology clients. The company previously discussed next-generation foundry cooperation, including future HBM products, with Nvidia's CEO. Samsung also anticipates securing more advanced 2-nanometer foundry orders soon and previously secured a $16.5 billion contract to manufacture logic chips for Tesla.

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The expanded collaboration ... reflects Samsung's focus on supporting customers with end-to-end semiconductor technologies across an increasingly diverse range of AI and high-performance computing applications.