Samsung Electronics has agreed a five-year expansion of its work with Broadcom spanning memory chips, contract chip making and advanced packaging, envisaged to exceed $200 billion until 2030. The memorandum of understanding pairs Broadcom's custom AI chip design with Samsung's sub-2-nanometre manufacturing and next-generation high-bandwidth memory.
Samsung Electronics said on Saturday it struck a pact with U.S. chip designer Broadcom to widen cooperation across memory chips, contract chip making and advanced packaging, envisaged to exceed $200 billion until 2030. Winning long-term production commitments from Broadcom, one of the world's leading custom AI chip designers, could boost utilization at Samsung's advanced manufacturing facilities to pull ahead in the race to supply AI chips.
What the five-year memorandum covers
The next five years of collaboration will combine Broadcom's expertise in designing application-specific integrated circuits, or chips for specific tasks, with Samsung's manufacturing capabilities. Broadcom's next-generation communications chips, designed for high-speed data transfer, will be made with Samsung's sub-2-nanometre process technology, Samsung said.
Samsung and Broadcom will also collaborate on next-generation high-bandwidth memory products. Samsung said the expanded collaboration reflects its focus on supporting customers with end-to-end semiconductor technologies, across what it called an "increasingly diverse range of AI and high-performance computing applications".
Samsung chases TSMC in the foundry race
The partnership could help strengthen Samsung's foundry business, as it seeks to narrow the gap with industry leader TSMC by wooing major technology customers. The tie-up comes as global technology companies increasingly develop their own custom AI accelerators rather than relying solely on general-purpose graphics processors, driving demand for specialized chip design and manufacturing partnerships.
Broadcom is not the only name Samsung has courted. Last month, co-CEO and chip division head Jun Young-hyun said he discussed next-generation foundry cooperation with Jensen Huang, chief executive of Nvidia, including future HBM4E and HBM5 memory products.
More 2-nanometre orders expected
Samsung said this year it expected to secure more advanced 2-nanometre foundry orders in the near term after discussions with major tech companies. Last year, the company won a $16.5 billion contract to make logic chips for EV maker Tesla.
Source: CNBC
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