Samsung Electronics has signed a strategic agreement with U.S.-based chip designer Broadcom to expand their collaboration in memory chips, contract chip manufacturing, and advanced packaging.
The partnership is expected to exceed $200 billion by 2030, strengthening Samsung’s position in the fast-growing AI semiconductor market.
The long-term agreement gives Samsung a major opportunity to increase production at its advanced manufacturing facilities by securing commitments from Broadcom, one of the world’s leading custom AI chip designers. The collaboration will support the growing demand for AI and high-performance computing technologies through Samsung’s end-to-end semiconductor capabilities.
The partnership comes as global technology companies increasingly develop their own custom AI accelerators instead of relying only on general-purpose graphics processors. This shift is driving demand for specialised chip design and manufacturing partnerships.
Under the memorandum of understanding, Samsung and Broadcom will expand their long-term relationship over the next 5 years. The collaboration will combine Broadcom’s expertise in designing application-specific integrated circuits (ASICs) with Samsung’s advanced chip manufacturing capabilities.
As part of the agreement, Broadcom’s next-generation communications chips for high-speed data transfer will be manufactured using Samsung’s sub-2-nanometre process technology. The companies will also jointly develop next-generation high-bandwidth memory (HBM) products.
The deal is expected to strengthen Samsung’s foundry business as it works to reduce the gap with industry leader TSMC by attracting more major technology customers.
Last month, Samsung’s co-CEO and head of its chip division, Jun Young-hyun, said he discussed next-generation foundry collaboration with Nvidia CEO Jensen Huang, including future HBM4E and HBM5 memory products.
Samsung also said it expects to secure additional 2-nanometre foundry orders in the near future following discussions with major technology companies. Last year, the company won a $16.5 billion contract to manufacture logic chips for electric vehicle maker Tesla.
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