Samsung Electronics has expanded its semiconductor partnership with Broadcom to focus on AI chips, in a deal that is expected to surpass $200 billion in total activity by 2030, according to a Reuters report cited by TechSpot.
The agreement includes memory chips, contract manufacturing and advanced packaging, and runs through 2030. Broadcom’s next-generation communications chips will be produced using Samsung’s sub-2 nanometer process, and both companies will collaborate on next-generation high-bandwidth memory.
The deal provides Broadcom with greater access to Samsung’s production capabilities and secures long-term demand for Samsung’s advanced manufacturing facilities.
Samsung and Broadcom expand AI chip partnership
The partnership focuses on closer integration between Broadcom’s ASIC designs and Samsung’s manufacturing capabilities, spanning chip design, manufacturing and memory across multiple product lines.
Broadcom’s next-generation communications chips will be manufactured using Samsung’s sub-2 nanometer process, positioning them at the forefront of chip scaling, where efficiency and heat management are increasingly challenging.
The two companies are also developing next-generation high-bandwidth memory, a component that artificial intelligence systems depend on to move large amounts of data quickly.
As models grow, memory bandwidth has become a limiting factor, increasing the importance of tightly coordinating logic chips and memory.
The deal reflects a broader shift in AI hardware development. Big tech companies are moving toward custom chips designed for specific workloads rather than relying solely on general-purpose GPUs.
This trend is pushing chip designers and manufacturers toward closer, longer-term collaborations, such as those reflected in the agreement between Samsung and Broadcom.
Performance gains in AI infrastructure are increasingly tied to how chips, memory and packaging work together, rather than improvements in a single component, which explains why the deal spans multiple stages of the semiconductor process.
What the Broadcom deal means for Samsung’s foundry business
For Samsung, the deal improves its position in the foundry market, where it competes with TSMC. TechSpot notes that Broadcom’s consistent, high-volume orders could improve utilization rates at Samsung’s advanced manufacturing facilities.
Samsung continues to seek additional customers for its more advanced nodes. Earlier this year, the company stated that it expects to secure more 2-nanometer orders after talks with major technology companies, and its leadership has referenced ongoing talks about next-generation memory, including HBM4E and HBM5.
Samsung has previously landed big contracts, such as a $16.5 billion deal to produce chips for Tesla. However, the deal with Broadcom stands out for its broad scope, covering multiple stages of the semiconductor process rather than a single product line.
The deal coincides with growing and increasingly specialized demand for AI infrastructure. As custom silicon replaces general-purpose GPUs for specific workloads, manufacturers with logic, memory and packaging expertise are better positioned to secure long-term contracts.
The partnership between Samsung and Broadcom brings these stages together into a single multi-year agreement, rather than separate contracts for each component.
What Samsung and Broadcom have not confirmed
The companies have stated that the total scope of the deal will exceed $200 billion by 2030, but have not disclosed a year-by-year spending breakdown, specific chip volumes, or the timeline for Broadcom’s sub-2-nanometer chip production.
It is also unclear which generation of HBM, such as HBM4E or HBM5, will have priority in joint memory development. Additional details are expected as Samsung and Broadcom finalize individual components of the partnership.
