Samsung Electronics Secures Landmark $200 Billion Broadcom Partnership to Supercharge AI Chip Foundry Dominance

Last updated: July 26, 2026 4:28 am

6 days ago

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Samsung Electronics has inked a monumental deal with Broadcom, projected to exceed $200 billion by 2030. This strategic partnership focuses on memory chips, contract chip manufacturing, and advanced packaging, significantly boosting Samsung’s foundry capabilities in the booming AI chip sector.

The agreement, which includes long-term production commitments from Broadcom, will leverage Samsung’s advanced manufacturing technologies, including its sub-2-nanometre process, and collaboration on next-generation HBM products, aiming to strengthen Samsung’s foundry business against competitors like TSMC.

Samsung Electronics Secures Landmark $200 Billion Broadcom Partnership to Supercharge AI Chip Foundry Dominance

February 24, 2024

A Samsung flag flies outside the company office in Seoul, South Korea on February 05, 2024. (Chung Sung-jun | Getty Images News | Getty Images)

Samsung Electronics announced a monumental pact with U.S. chip designer Broadcom, a collaboration set to exceed $200 billion by 2030. This strategic alliance will span crucial areas including memory chips, contract chip manufacturing, and advanced packaging, significantly bolstering Samsung's foundry ambitions.

The agreement secures long-term production commitments from Broadcom, a leading force in custom AI chip design. This coup is expected to significantly enhance utilization rates at Samsung's cutting-edge manufacturing facilities, propelling the company forward in the highly competitive race to supply the burgeoning AI chip market.

"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," Samsung stated in a press release. This partnership arrives at a pivotal moment as global tech giants increasingly lean towards developing proprietary AI accelerators, moving away from sole reliance on general-purpose graphics processors, thereby escalating the demand for specialized chip design and manufacturing partnerships.

This memorandum of understanding between Samsung and Broadcom underscores Samsung's strategic drive to solidify its position in the AI semiconductor landscape. The expanded, long-term ties with Broadcom are a direct response to the escalating demand for custom AI processors.

The collaborative efforts over the next five years will synergize Broadcom's profound expertise in designing Application-Specific Integrated Circuits (ASICs) – chips tailored for specific tasks – with Samsung's formidable manufacturing prowess. Notably, the deal stipulates that Broadcom's next-generation communication chips, engineered for high-speed data transfer, will be manufactured utilizing Samsung's advanced sub-2-nanometre process technology.

Furthermore, the two industry leaders will join forces to develop next-generation High-Bandwidth Memory (HBM) products. This collaboration is poised to strengthen Samsung's foundry business significantly, as it endeavors to close the gap with industry leader TSMC by attracting major technology clients.

This development follows closely on the heels of recent discussions, where Samsung's co-CEO and chip division head, Jun Young-hyun, engaged with Nvidia CEO Jensen Huang regarding next-generation foundry cooperation, including future HBM4E and HBM5 memory products. Earlier this year, Samsung expressed optimism about securing more advanced 2-nanometre foundry orders in the near term, following constructive dialogues with major technology firms. Last year, Samsung secured a substantial $16.5 billion contract to manufacture logic chips for electric vehicle innovator Tesla.