Samsung Secures Broadcom AI Chip Partnership Worth Up to $200 Billion
Samsung Electronics has signed a long-term memorandum with Broadcom covering memory, contract manufacturing and advanced packaging for AI and high-performance computing products through 2030.
Why it matters: Custom AI chips are creating large new opportunities across foundry manufacturing, memory and advanced packaging.
Samsung Electronics has announced a partnership with Broadcom valued at up to $200 billion through 2030 across several layers of semiconductor manufacturing.
The companies plan to work on memory, advanced packaging and contract manufacturing, including next-generation communication and custom AI chips using Samsung's advanced process technology. High-bandwidth memory is also included in the collaboration.
Broadcom has become a major supplier of custom accelerators and networking technology for companies building large AI systems. The agreement gives it another manufacturing and memory partner while providing Samsung with a high-profile customer for its foundry and packaging operations.
For Samsung, the strategic value goes beyond the stated contract amount. Higher utilization and customer validation are important as its foundry business competes with TSMC for advanced-node AI work.