Samsung Secures $200 Billion Chip Deal With Broadcom

Samsung Electronics Co. secured a contract exceeding $200 billion to manufacture chips for Broadcom Inc., a significant move in the competitive AI infrastructure market. This five-year agreement, extending through 2030, will leverage Samsung's 2-nanometer and sub-2nm process technologies for Broadcom's product lines, as stated by the South Korean chipmaker on Saturday. The pact deepens the existing strategic partnership between the two companies, encompassing both memory and foundry technologies.

This deal underscores Samsung's and SK Hynix Inc.'s intensified efforts to secure artificial intelligence chip orders globally, facing robust competition from entities like Taiwan Semiconductor Manufacturing Co. South Korea has set ambitious goals to double its memory production capacity within five years and establish leading manufacturing capabilities to maintain a competitive edge internationally. Samsung's role will include supporting Broadcom's next-generation AI accelerators with its memory solutions.

The collaboration is anticipated to encompass advanced packaging technologies, including 2.3D and 2.5D integration, built upon Samsung's 2nm process. These advancements aim to deliver AI and networking silicon with enhanced performance and greater power efficiency. The announcement coincides with South Korean President Lee Jae Myung's visit to Silicon Valley for an AI summit, where several tech deals and partnerships are being unveiled, including collaborations between Nvidia Corp. and South Korea's Naver Corp. and SK Hynix Inc.