Samsung Signs Landmark $200 Billion AI Chip Deal With Broadcom

Samsung Electronics has signed a landmark agreement with U.S. chip designer Broadcom to strengthen its position in the global AI semiconductor market. The partnership, which runs through 2030, covers memory chips, contract chip manufacturing, and advanced packaging services, with Samsung estimating the deal's total value at more than US$200 billion.

Joint Collaboration on Memory, Chip Manufacturing, and Packaging

Under the agreement, Broadcom's expertise in designing custom AI processors and Application-Specific Integrated Circuits (ASICs) will be combined with Samsung's semiconductor fabrication and manufacturing capabilities.

Broadcom's next-generation high-speed connectivity chips will be produced using Samsung's sub-2-nanometer process technology. The two companies will also jointly develop next-generation High Bandwidth Memory (HBM) chips to support the growing demands of AI computing.

Intensifying Competition in AI Chip Manufacturing

As major technology companies increasingly move away from relying solely on general-purpose GPUs from companies like Nvidia, demand for custom AI chips tailored to specific workloads has surged. The Samsung–Broadcom partnership is expected to strengthen Samsung's position in the contract chip manufacturing market and help narrow the gap with industry leader TSMC.

Samsung recently held discussions with Nvidia CEO Jensen Huang regarding future supplies of HBM4E and HBM5 memory. Earlier, the company secured a US$16.5 billion contract to manufacture logic chips for Tesla. Winning Broadcom's long-term partnership marks another major milestone for Samsung's semiconductor business as it seeks to expand its presence in the rapidly growing AI chip industry.

//DBTech/BMT/OR//