Samsung Electronics has signed a semiconductor partnership with Broadcom valued at more than $200 billion through 2030 for supplying artificial intelligence chips.
The agreement broadens collaboration across memory chips, contract chip manufacturing (foundry services), and advanced semiconductor packaging. The deal provides Samsung with major production commitments from Broadcom, one of the world’s leading designers of custom AI chips, helping improve utilization of Samsung’s advanced fabrication facilities while accelerating its push to narrow the gap with Taiwan Semiconductor Manufacturing (TSMC) in advanced chip production.
Samsung said the expanded partnership reflects its strategy of providing end-to-end semiconductor technologies for a range of AI and high-performance computing workloads.
Broadcom is expected to leverage Samsung’s advanced sub-2-nanometer manufacturing technology for next-generation communication chips, while the companies will also collaborate on high-bandwidth memory (HBM) products that are increasingly critical for AI accelerators.
“AI is driving demand for semiconductor technologies spanning memory, logic and advanced packaging,” said Young Hyun Jun, Vice Chairman & CEO of the Device Solutions (DS) Division at Samsung Electronics. “By expanding our collaboration with Broadcom across these critical technologies, we look forward to delivering greater value to customers while advancing the AI infrastructure.”
The agreement comes as hyperscalers and major technology companies increasingly develop AI accelerators instead of relying exclusively on general-purpose graphics processors. This trend is driving demand for specialized chip design, advanced manufacturing, memory integration, and packaging capabilities, creating new growth opportunities for semiconductor foundries.
The Broadcom partnership follows Samsung’s recent efforts to strengthen its AI semiconductor business.
Charlie Kawwas, President, Semiconductor Solutions Group of Broadcom, said: “By combining Samsung’s memory and foundry expertise with Broadcom’s AI and connectivity leadership, we aim to continue to deliver technologies that power the next generation of AI infrastructure.”
Reuters noted that Samsung recently held discussions with Nvidia on next-generation HBM memory and previously secured a $16.5 billion chip manufacturing contract with Tesla. Together, these agreements are expected to enhance Samsung’s competitiveness in the rapidly expanding AI semiconductor market while supporting higher utilization across its advanced manufacturing facilities.
