Samsung and Broadcom forge $200 billion strategic MOU to build next-generation chip supply chain for AI
Samsung Electronics Co. and U.S. chip designer Broadcom Inc. have formed a strategic partnership worth $200 billion to build an integrated, one-stop artificial intelligence (AI) semiconductor supply chain through 2030. The two companies signed a memorandum of understanding (MOU) at the San Francisco AI Summit, which the Korean government organized and hosted on Friday.
Under the partnership, Samsung will supply Broadcom with an integrated solution combining HBM4 and HBM4E memory, sub-2-nanometer foundry process capabilities, and advanced packaging technologies tailored for next-generation AI accelerators and high-speed networking chips. The collaboration spans memory, foundry, and packaging over the five-year period.
This partnership reflects a significant market shift in AI semiconductors. Rather than relying solely on Nvidia Corp.'s graphics processing unit (GPU)-based systems, major technology companies are increasingly developing custom AI accelerators, or application-specific integrated circuits (ASICs). Broadcom's AI semiconductor revenue reached $10.8 billion in the second quarter of fiscal 2026, a 143 percent increase from the prior year. With projections that Broadcom's AI chip revenue will reach $16 billion in the third quarter, demand for custom accelerators and AI networking chips is expected to accelerate further.
Industry analysts point to growing demand for manufacturing partners capable of integrating memory, compute chips, and advanced packaging into a single solution. For Samsung, the partnership offers multiple strategic advantages. Diversifying its HBM customer base reduces reliance on any single customer, while successfully mass-producing sub-2-nanometer chips for a major client validates manufacturing yields and process reliability—key credentials for securing additional foundry orders. Bundling memory, foundry manufacturing, and advanced packaging into one offering strengthens customer relationships beyond individual product sales, while closer collaboration can shorten development cycles and reduce power consumption.
The partnership is also expected to position Samsung as a potential alternative to the advanced foundry and packaging ecosystem currently dominated by Taiwan Semiconductor Manufacturing Co. In the AI accelerator market, where HBM integration and advanced packaging are critical to performance, Samsung's entry could help ease manufacturing bottlenecks, reduce supply chain concentration, and improve price and delivery competitiveness. As one industry official summarized: "The partnership lays the groundwork for Samsung to become an integrated AI semiconductor provider spanning memory and foundry, though its success will depend on customer qualification, 2-nanometer yields, advanced packaging capacity and final order volumes."