Samsung Wins $200 Billion Broadcom AI Chip Contract

Samsung Electronics signed a memorandum of understanding with Broadcom Inc. to provide chip manufacturing and memory technologies through 2030. The deal, valued at more than $200 billion, focuses on the use of Samsung's 2-nanometer and below process technologies to develop next-generation AI accelerators and high-speed communications chips.

The partnership emphasizes the co-development of high-bandwidth memory (HBM) products and the use of advanced 2.3D and 2.5D packaging integration for high-performance computing. This strategic alignment allows Broadcom to combine its custom application-specific integrated circuit (ASIC) design expertise with Samsung's foundry capabilities.

This agreement coincides with South Korean President Lee Jae Myung's visit to Silicon Valley for an AI summit. The deal is part of a broader effort by Samsung and SK Hynix Inc. to capture a larger share of the AI infrastructure market and narrow the competitive gap with Taiwan Semiconductor Manufacturing Co.