Samsung Electronics has signed a major semiconductor partnership with US chip designer Broadcom, expanding collaboration across memory chips, contract chip manufacturing, and advanced packaging in a deal expected to exceed $200 billion by 2030.
Announced on Saturday, the agreement is expected to strengthen Samsung's position in the fast-growing artificial intelligence (AI) semiconductor market while securing long-term production commitments from one of the world's leading custom AI chip designers.
Partnership Targets AI Chip Manufacturing Growth
The companies signed a memorandum of understanding (MoU) to deepen cooperation over the next five years, combining Broadcom's expertise in designing application-specific integrated circuits (ASICs) with Samsung's advanced semiconductor manufacturing capabilities.
Samsung said the expanded collaboration reflects its strategy of providing customers with end-to-end semiconductor technologies for AI and high-performance computing applications, according to Reuters.
"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," the company said in a statement.
The agreement comes as global technology companies increasingly develop custom AI accelerators tailored to specific workloads instead of relying solely on general-purpose graphics processors, creating strong demand for specialised chip design and manufacturing.
Broadcom to Use Samsung's 2-Nanometre Process
As part of the agreement, Broadcom's next-generation communications chips designed for high-speed data transfer will be manufactured using Samsung's sub-2-nanometre process technology.
The companies will also jointly develop next-generation high-bandwidth memory (HBM) products, a critical component used in AI accelerators and advanced data center processors.
The collaboration is expected to enhance Samsung's capabilities across both advanced logic manufacturing and AI memory technologies.
Samsung Strengthens Foundry Business
The long-term partnership is expected to provide a significant boost to Samsung's foundry business, which has been working to narrow the gap with industry leader Taiwan Semiconductor Manufacturing Co. (TSMC).
Securing production orders from Broadcom, one of the world's largest custom AI chip developers, could improve utilisation at Samsung's advanced fabrication facilities while reinforcing its position as an alternative manufacturing partner for global technology companies.
The deal also aligns with Samsung's broader strategy of attracting major AI chip customers as demand for custom processors continues to surge.
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AI Chip Demand Drives Industry Partnerships
The semiconductor industry has witnessed a shift toward custom-designed AI chips, with cloud providers and technology companies increasingly developing specialised processors optimised for artificial intelligence workloads.
This trend has fueled demand for partnerships between chip designers and contract manufacturers capable of producing advanced semiconductors using cutting-edge process technologies.
Samsung and Broadcom expect their expanded collaboration to address this growing market by combining advanced chip design with next-generation manufacturing and packaging solutions.
Samsung Continues to Win Major Chip Orders
The Broadcom agreement builds on Samsung's recent efforts to expand its semiconductor customer base.
Last month, Samsung Electronics Vice Chairman and Co-CEO Jun Young-hyun, who also leads the company's semiconductor division, said he had discussed future foundry cooperation with Nvidia CEO Jensen Huang, including next-generation HBM4E and HBM5 memory technologies.
Samsung has also indicated that it expects to secure additional 2-nanometre foundry orders from major technology companies in the near term.
In 2025, the company won a $16.5 billion contract to manufacture logic chips for electric vehicle maker Tesla, underscoring its ambitions to become a stronger competitor in the global contract chip manufacturing market.
Outlook
The expanded Samsung-Broadcom partnership represents one of the largest long-term semiconductor collaborations announced this year. With a projected value exceeding $200 billion through 2030, the agreement reinforces Samsung's push to become a leading supplier of AI chips, advanced memory, and foundry services at a time when demand for custom AI processors is accelerating worldwide.
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