Samsung Electronics announced a partnership with U.S. chip designer Broadcom, focusing on memory chips, contract chip making, and advanced packaging, with expectations to exceed $200 billion by 2030.
This agreement is particularly important as it secures long-term production commitments from Broadcom, a leader in custom AI chip design, which could enhance the utilization of Samsung's advanced manufacturing facilities. The collaboration aims to meet the growing demand for specialized AI chips, as technology companies increasingly develop custom AI accelerators.
The memorandum of understanding highlights Samsung's strategy to bolster its position in the AI semiconductor sector by leveraging Broadcom's expertise in application-specific integrated circuits (ASICs) alongside its own manufacturing capabilities.
The partnership will also involve the production of Broadcom's next-generation communications chips using Samsung's advanced sub-2-nanometre process technology and the development of high-bandwidth memory (HBM) products.
This move is part of Samsung's broader efforts to compete with industry leader TSMC and attract major technology customers, following recent discussions with Nvidia regarding future memory products. Samsung anticipates securing more advanced foundry orders soon, building on its previous success with a $16.5 billion contract to produce logic chips for Tesla