Samsung and Broadcom announced a strategic partnership covering memory, foundry, and advanced packaging technologies for 2nm AI chips, estimated worth over $200 billion by end of decade.

Samsung Electronics and Broadcom have announced a landmark $200 billion agreement running through 2030, spanning memory supply, foundry manufacturing, and advanced packaging to support global AI infrastructure. Signed during an AI summit in San Francisco, the five-year memorandum of understanding ranks among the largest semiconductor collaborations ever announced and delivers Samsung a major commercial win as demand for custom AI hardware accelerates.

At the core of the deal is Broadcom's use of Samsung's sub-2-nanometer foundry process to manufacture next-generation application-specific integrated circuits (ASICs) and high-speed networking silicon. As Meta, Google, and other hyperscale operators move away from exclusive reliance on general-purpose graphics processors, custom ASICs designed for data centers have become the standard architecture for running massive AI workloads efficiently.

Samsung will supply Broadcom with its most advanced high-bandwidth memory products, including next-generation HBM4 and HBM4E variants. The agreement also encompasses deep co-development in advanced 2.3D and 2.5D semiconductor packaging—critical to modern AI performance, which depends not just on transistor density but on how tightly memory, logic, and networking components integrate within a single module to minimize latency and power loss. Samsung's ability to serve as a unified provider of memory production, leading-edge fabrication, and multi-chip packaging gives both companies a competitive advantage in next-generation hardware design.

For Samsung, the agreement provides substantial momentum for its contract chipmaking division, which has worked to narrow the gap with rival Taiwan Semiconductor Manufacturing Company (TSMC). Multi-year commitments like this guarantee high factory utilization across Samsung's manufacturing hubs while signaling industry confidence in its sub-2nm technology. Recent wins include an NVIDIA contract for HBM4E and HBM5 products and a $16.5 billion agreement to produce logic chips for Tesla.

By expanding production into Samsung's facilities, Broadcom diversifies its manufacturing strategy beyond TSMC, protecting its custom silicon supply chain against potential capacity constraints as enterprise AI adoption accelerates globally.