In one of the semiconductor industry’s largest strategic alliances to date, South Korean tech giant Samsung Electronics and U.S. chip designer Broadcom have signed a landmark memorandum of understanding (MOU) estimated at more than $200 billion. The five year deal, extending through 2030, establishes an expansive partnership across advanced memory, foundry manufacturing, and next generation packaging to meet soaring global demand for artificial intelligence hardware.
The announcement was unveiled during an AI summit in San Francisco attended by senior executives from both companies alongside government delegates. The deal marks a pivotal moment in the global race for custom AI infrastructure, as technology hyperscalers increasingly move away from off the shelf accelerators toward specialized silicon tailored to custom workloads.
Under the terms of the memorandum, Samsung will provide Broadcom with end to end semiconductor solutions:
High Bandwidth Memory (HBM): Samsung will supply cutting edge memory solutions, including HBM4 and HBM4E chips, designed to power Broadcom’s next generation AI accelerators.
2nm Foundry Manufacturing: Samsung’s contract manufacturing arm will produce Broadcom products using two-nanometer (2nm) and below process nodes at its primary fabrication facilities in Pyeongtaek, South Korea, spanning custom AI logic as well as Wireless Broadband Communications (WBC) solutions.
Advanced Packaging Integration: The collaboration leverages Samsung’s 2.3D and 2.5D advanced packaging capabilities. Tightly integrating logic and memory chips into a single package maximizes energy efficiency and data throughput a crucial requirement for high performance computing.
Highlighting the strategic importance of the collaboration, Young Hyun Jun, Vice Chairman and CEO of Samsung Electronics’ Device Solutions (DS) Division, stated:
“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.”
Confirming the joint commitment to scaling AI capacity, Charlie Kawwas, President of Broadcom’s Semiconductor Solutions Group, added:
“As AI infrastructure continues to scale, close collaboration across the semiconductor ecosystem becomes increasingly important. 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.”
The collaboration provides strategic benefits for both semiconductor heavyweights. For Broadcom, which designs custom chips for major cloud vendors, partnering with Samsung secures vital production capacity and provides supply chain diversification away from Taiwan Semiconductor Manufacturing Co. (TSMC).
For Samsung, securing a long term commitment worth over $200 billion provides a major boost to its foundry business. As global demand for AI silicon continues to outpace supply, the agreement validates Samsung’s sub-3nm process roadmap and solidifies its position as a primary provider of end to end AI hardware solutions.
