Samsung and Broadcom forge $200 billion AI chip partnership to challenge TSMC's dominance

Samsung Elec wins $200 billion Broadcom AI chip partnership, boosting foundry push

SEOUL, July 25 (Reuters) - Samsung Electronics (005930.KS), opens new tab said on Saturday it struck a pact with U.S. chip designer Broadcom (AVGO.O), opens new tab 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 utilisation at Samsung's advanced manufacturing facilities to pull ahead in the race to supply AI chips. "The expanded collaboration ... reflects Samsung's focus on supporting customers with end-to-end semiconductor technologies across an increasingly diverse range ⁠of AI and high-performance computing applications," the company said in a statement. 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 specialised chip design and manufacturing partnerships. The two firms' memorandum of understanding underscores Samsung's efforts to beef up its position in AI semiconductors by expanding its long-term ties with Broadcom amid growing demand up for custom AI processors. The next five years of collaboration will combine ⁠Broadcom's expertise in designing application-specific integrated circuits (ASICs), or chips for specific tasks, with Samsung's manufacturing capabilities. The deal provides for Broadcom's next-generation communications chips, designed for high-speed data transfer, to be made with Samsung's sub-2-nanometre process technology, Samsung said. The two will also collaborate on next-generation high-bandwidth ⁠memory (HBM) products. The partnership could help strengthen Samsung's foundry business, as it seeks to narrow the gap with industry leader TSMC (2330.TW), opens new tab by wooing major technology customers. 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 (NVDA.O), opens new tab, including future HBM4E and HBM5 memory products. 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, it won a $16.5-billion contract to make logic chips for EV maker Tesla (TSLA.O), opens new tab. Reporting by Heekyong Yang; Editing by Clarence Fernandez Our Standards: The Thomson Reuters Trust Principles., opens new tab * Suggested Topics: * Disrupted * ADAS, AV & Safety * Sustainable & EV Supply Chain

Samsung lands Broadcom AI chip deal worth more than $200 billion through 2030

Serving tech enthusiasts for over 25 years. TechSpot means tech analysis and advice you can trust. What just happened? Samsung Electronics has expanded its semiconductor partnership with Broadcom to focus on AI chips, bringing together chip design, manufacturing, and memory in a deal that could run through the end of the decade. The companies said the agreement covers memory chips, contract manufacturing, and advanced packaging, with total activity expected to exceed $200 billion by 2030. The partnership gives Broadcom deeper access to Samsung's production capabilities, while Samsung secures longer-term demand for its most advanced fabs. At a technical level, the deal is built around closer integration between Broadcom's ASIC designs and Samsung's manufacturing stack. Broadcom's next-generation communications chips will be produced using Samsung's sub-2-nanometer process, putting them at the leading edge of chip scaling, where efficiency and heat management are becoming increasingly challenging. The two companies are also working on next-generation high-bandwidth memory, a critical component for AI systems that need to move large amounts of data quickly. As models grow larger, memory bandwidth has become a limiting factor, making tighter coordination between logic chips and memory increasingly important. The partnership reflects a broader shift in how AI hardware is being developed. Large tech companies are moving toward custom-built chips designed for specific workloads rather than relying solely on general-purpose GPUs. That trend is pushing chip designers and manufacturers toward closer, longer-term collaborations. For Samsung, the deal is also about strengthening its position in the foundry market, where it competes with TSMC. Securing consistent, high-volume work from a company like Broadcom could help improve utilization at its advanced manufacturing facilities. Samsung has been trying to attract more customers for its most advanced nodes. Earlier this year, the company said it expected to win additional 2-nanometer orders following discussions with major tech firms. Its leadership has also pointed to ongoing talks around next-generation memory, including HBM4E and HBM5. Samsung has landed large contracts before, including a $16.5 billion deal to produce chips for Tesla. But the Broadcom agreement stands out for its scope, covering multiple parts of the semiconductor process rather than a single product line. The timing comes as demand for AI infrastructure continues to grow and become more specialized. Performance gains are increasingly tied to how chips, memory, and packaging work together rather than improvements in any single component.

Samsung and Broadcom sign $200 billion chip deal spanning memory, foundry and packaging

Samsung Electronics and Broadcom have signed a memorandum of understanding worth more than $200 billion spanning memory chips, foundry manufacturing and advanced packaging for artificial intelligence semiconductors. The deal, announced on Friday at an AI summit in San Francisco, runs for five years through 2030 and covers some of the most critical layers of the AI chip supply chain. It is one of the largest semiconductor partnerships ever disclosed, though as an MOU it represents a statement of intent rather than a binding contract. On the memory side, Samsung will supply Broadcom with next-generation high-bandwidth memory, including HBM4 and HBM4E chips, for use in Broadcom's AI accelerators. In foundry, Samsung will manufacture Broadcom products using two-nanometer and smaller process technologies at its campus in Pyeongtaek, South Korea. The collaboration also extends to advanced packaging that integrates memory and logic more tightly, a technique increasingly central to squeezing more performance out of AI silicon. Broadcom designs custom AI chips for hyperscalers including Google, Meta and others that want silicon tailored to their specific workloads rather than buying off-the-shelf GPUs from Nvidia. The company extended its AI chip partnership with Meta through 2029 in April, and CEO Hock Tan recently said surging AI revenue has made organic growth more attractive than acquisitions. By diversifying manufacturing to Samsung, Broadcom gains supply chain resilience beyond its existing reliance on TSMC, which controls more than 90 percent of leading-edge chip production. For Samsung, the deal addresses a persistent credibility gap in its foundry business, where its global market share has fallen to roughly seven percent while TSMC dominates. The company has struggled with yields on its two-nanometer process, but a $200 billion customer commitment from one of the industry's largest chip designers could change the calculus for investors who have questioned whether Samsung can compete at the leading edge. Samsung posted record quarterly operating profit of 89 trillion won in Q2, driven almost entirely by AI memory demand. The signing took place alongside a broader package of semiconductor deals worth roughly $950 billion between South Korean and American companies, announced during an AI summit hosted by South Korean President Lee Jae Myung. SK Hynix signed memory partnerships worth $750 billion with Nvidia and others, and Anthropic signed supply agreements with both Samsung and SK Hynix. The summit followed Seoul's $880 billion domestic investment plan unveiled in June, which committed Samsung and SK Hynix to building four new chip fabrication plants in the country's southwest.

Samsung Electronics and Broadcom Expand Strategic Collaboration Across Memory and Foundry Technologies

Companies sign memorandum of understanding to broaden collaboration on next-generation AI infrastructure, spanning leading-edge memory, foundry technologies and advanced packaging Samsung Electronics and Broadcom today announced the signing of a memorandum of understanding (MOU) to expand their strategic collaboration across memory and foundry technologies, supporting the next generation of AI infrastructure. The MOU was announced during the AI Summit, held at The Midway in San Francisco. Attendees included Jinman Han, President and Head of Samsung Electronics' Foundry Business, Hock Tan, President and CEO of Broadcom, senior executives from both companies and representatives of the Korean government. The companies expect the collaboration to be estimated at more than $200 billion across memory and foundry over the next five years through 2030. On the memory front, Samsung and Broadcom plan to pursue a strategic collaboration for the supply of industry-leading memory solutions, including High Bandwidth Memory (HBM), supporting Broadcom's next-generation AI accelerators. In foundry, the companies' collaboration focuses on Samsung's 2-nanometer (nm) and below process technologies for Broadcom's products, including Wireless Broadband Communications (WBC) solutions. The collaboration is expected to extend to advanced packaging technologies built on Samsung's 2nm process, including 2.3D and 2.5D integration, to enable higher-performance and more power-efficient AI and networking silicon. "AI is driving unprecedented demand for tightly integrated 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 of the future." "As AI infrastructure continues to scale, close collaboration across the semiconductor ecosystem becomes increasingly important," said Charlie Kawwas, President, Semiconductor Solutions Group of Broadcom. "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." With capabilities encompassing memory, logic, foundry and advanced packaging, Samsung is uniquely positioned to deliver integrated semiconductor solutions for the AI era. The expanded collaboration with Broadcom reflects Samsung's continued focus on supporting customers with end-to-end semiconductor technologies across an increasingly diverse range of AI and high-performance computing applications.

Samsung and Broadcom's New Partnership is Aimed at Furthering AI Hardware Development

It's clear that the AI bubble has continued to grow these past few years, with companies left and right looking to capitalize on AI-fulled industry trends within the consumer electronics landscape and beyond. With that in mind, Samsung has announced that it's signed a new memorandum of understanding with semiconductor and infrastructure giant Broadcom, which was announced during the recent AI Summit in San Francisco. The joint initiative aims to supply advanced hardware for next-generation artificial intelligence infrastructure, and is expected to represent more than $200 billion in potential scope over the next five years. Young Hyun Jun, Vice Chairman & CEO of the Device Solutions (DS) Division at Samsung comments: AI is driving unprecedented demand for tightly integrated semiconductor technologies spanning memory, logic and advanced packaging... By expanding our collaboration with Broadcom across these critical technologies, we look forward to delivering greater value to customers while advancing the AI infrastructure of the future. Under the agreement, Samsung will supply high-performance memory solutions such as High Bandwidth Memory for Broadcom's upcoming AI accelerators. The partnership also focuses on foundry production, which will use Samsung's sub-2-nanometer manufacturing process nodes to produce Broadcom silicon, including its Wireless Broadband Communications products. The two companies also plan to co-develop advanced packaging solutions based on Samsung's 2nm platform. By integrating 2.3D and 2.5D packaging, the collaboration in theory should enhance performance and energy efficiency for high-performance computing and networking chips.

Samsung Electronics wins $200 billion Broadcom AI chip partnership, boosting foundry push

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 specialised chip design and manufacturing partnerships. The next five years of collaboration will combine Broadcom's expertise in designing application-specific integrated circuits (ASICs), or chips for specific tasks, with Samsung's manufacturing capabilities. 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 utilisation at Samsung's ⁠advanced ⁠manufacturing facilities to pull ahead in the race to supply AI chips. "The expanded collaboration ... reflects Samsung's focus on supporting customers with end-to-end semiconductor technologies across an increasingly diverse range of AI and high-performance computing applications," the company said in a statement. 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 specialised chip design and manufacturing partnerships. The two firms' memorandum of understanding underscores Samsung's efforts to beef ⁠up its position in AI semiconductors by expanding its long-term ties with Broadcom amid growing demand up for custom AI processors. The next five years of collaboration will combine Broadcom's expertise in designing application-specific integrated circuits (ASICs), or chips for specific tasks, with Samsung's manufacturing capabilities. The deal provides for Broadcom's next-generation communications chips, designed for high-speed data transfer, to be made with Samsung's sub-2-nanometre process technology, Samsung said. The two will also collaborate on next-generation high-bandwidth memory (HBM) products. 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. 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. 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, it won a $16.5-billion contract to make logic chips for EV maker Tesla.

Samsung's Advantage Over TSMC As A Foundry Rival Expands Beyond The 2nm Process, Helping It Ink Multi-Billion-Dollar Agreements; Has Potential To Outgrow Its Competitor

TSMC is the undisputed king of the global semiconductor market, and to extend its lead, it has succeeded in developing cutting-edge lithography and advanced packaging. Samsung certainly has a lot of ground to cover in this aspect, but its strengths lie in being able to secure partnerships beyond its 2nm contracts, which have ultimately led to a mammoth $200 billion agreement with Broadcom to build next-generation AI infrastructure over the next five years. The major payoff will include Samsung's 2nm process and HBM4 memory that Broadcom will use for its AI accelerators Given that memory and storage have already established themselves as the leading revenue generators for companies like Samsung, SK Hynix, Micron, and others, the Korean giant's dominance in this area has landed it a deal with Broadcom, where the two entities signed a memorandum of understanding (MOU). The partnership will take on the ASIC market, with Broadcom leveraging Samsung's HBM4 memory for use in its AI accelerators. To strengthen the partnership, Samsung's next-generation HBM4E memory will eventually enter the production ramp to boost competitiveness. As for the 2nm GAA node, Samsung will apply its lithography to Broadcom's core products, which include high-speed data communication chips. It should also be mentioned that the multi-billion-dollar deal isn't going to be a simple contract, because Samsung's involvement helps to reduce Broadcom's chip design and development lead times. From the design stage to optimization, packaging, and finally volume production, Samsung is expected to perform a ton of hand-holding for Broadcom, but that's where the majority of the payout likely comes from. TSMC's 2nm process might have already contributed to 3 percent of its Q3 2026 revenue, but Samsung's foundry not only offers the newest manufacturing processes but a host of DRAM and storage options, giving the manufacturer a distinct advantage by offering flexibility to clients. TSMC's primary strength is its pure-play foundry model, which wouldn't have offered Broadcom the same integrated dynamic. The combination of Samsung's 2nm node and 1c DRAM production gives it the perk of co-optimizing the chip's physical design, power delivery, and thermal performance. For TSMC to provide the same advantages, it would have to partner with external memory suppliers, bringing friction and integration risks to the table. Even though having a multitude of suppliers is always beneficial, Broadcom's partnership with Samsung minimizes supply chain bottlenecks and lead times, reducing the time it takes for the chip to reach completion. News Source: Samsung Newsroom Follow Wccftech on Google to get more of our news coverage in your feeds.