Samsung and Broadcom announce expanded strategic partnership valued at $200 billion to co-develop AI infrastructure chips, custom silicon, and networking processors.
Samsung Electronics and Broadcom have formed a strategic partnership to collaborate on memory chips, foundry services, and advanced semiconductor packaging. The alliance is projected to exceed $200 billion in value by 2030, marking a significant supply chain realignment in the technology industry.
The partnership positions Samsung to secure production contracts from Broadcom, a leader in custom AI chip design. This arrangement will improve capacity utilization at Samsung's advanced fabrication plants and strengthen its competitive position in the race for AI hardware supremacy.
Samsung has emphasized that the collaboration reflects its commitment to delivering comprehensive end-to-end semiconductor solutions as global demand for such integrated offerings accelerates. The industry is undergoing a fundamental shift as major technology firms move beyond general-purpose GPUs to develop custom AI accelerators, creating substantial demand for partnerships that combine specialized design capabilities with world-class manufacturing.
Over the next five years, the partnership will merge Broadcom's expertise in application-specific integrated circuits (ASICs)—custom chips designed for specialized functions—with Samsung's advanced manufacturing processes. A key focus will be next-generation communication chips leveraging Samsung's sub-2-nanometre process technology to enable high-speed data transfer. The companies also plan to develop next-generation high-bandwidth memory (HBM) products critical for data centers and AI applications.
The alliance is expected to strengthen Samsung Foundry's position. Samsung has long sought to capture market share from competitor TSMC by offering competitive pricing and advanced technological capabilities to major clients.
The current deal builds on recent momentum in Samsung's semiconductor division. Last month, Samsung co-CEO Jun Young-hyun held discussions with Nvidia CEO Jensen Huang regarding future HBM4E and HBM5 memory solutions. Earlier this year, Samsung announced expectations of securing additional advanced 2-nanometre foundry orders following conversations with major technology companies. This follows the company's $16.5 billion contract from last year to manufacture custom logic chips for a major electric vehicle manufacturer.
As the industry transitions toward artificial intelligence and custom silicon, the Samsung-Broadcom partnership creates a formidable foundation for both companies. By combining Broadcom's ASIC design expertise with Samsung's manufacturing scale and memory solutions, the alliance is positioned to shape the high-performance computing and AI infrastructure landscape through 2030.