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Samsung Electronics has signed a landmark long-term agreement with U.S. chip designer Broadcom aimed at strengthening its position in the global artificial intelligence (AI) chip market. The deal, which runs through 2030, is expected to be worth more than $200 billion, covering memory chips, contract chip manufacturing, and advanced semiconductor packaging.
Under the agreement, Broadcom’s expertise in designing custom AI processors and application-specific integrated circuits (ASICs) will be combined with Samsung’s semiconductor manufacturing and production capabilities.
Broadcom’s next-generation high-speed communication chips, used for advanced data transfer in AI systems, will be manufactured using Samsung’s cutting-edge sub-2-nanometer process technology. The two companies will also jointly develop next-generation high-bandwidth memory (HBM) chips to meet the growing demands of AI computing.
The partnership comes as major technology companies increasingly shift away from relying solely on general-purpose processors, such as those made by Nvidia, and instead invest in custom-designed AI chips tailored to their specific workloads. This trend has fueled strong demand for specialized chip design and contract manufacturing services.
Industry analysts say the Broadcom agreement could help Samsung narrow the gap with Taiwan Semiconductor Manufacturing Co. (TSMC), the global leader in the contract chip manufacturing market.
The deal follows a series of major wins for Samsung’s semiconductor business. Earlier, the company secured a $16.5 billion contract to manufacture logic chips for electric vehicle maker Tesla. Samsung has also recently held discussions with Nvidia CEO Jensen Huang regarding the future supply of its HBM4E and HBM5 memory chips.
The Broadcom partnership is expected to significantly boost Samsung’s foundry business and reinforce its ambitions to become a leading supplier of advanced AI chips as global demand for AI infrastructure continues to accelerate.