Samsung Electronics Co. secured a contract exceeding $200 billion to supply chips to Broadcom Inc. over five years through 2030. The deal centers on Samsung’s 2-nanometer and below process technologies, marking a significant expansion of their strategic collaboration in memory and foundry technology, the South Korean company announced on Saturday.
The agreement builds on the existing partnership between Samsung and Broadcom, focusing on next-generation AI accelerators and advanced packaging technologies such as 2.3D and 2.5D integration. These innovations aim to deliver higher performance and greater power efficiency for AI and networking silicon. The deal was announced amid South Korean President Lee Jae Myung’s visit to Silicon Valley, where multiple tech partnerships were unveiled.
This contract highlights Samsung’s intensified push into the AI infrastructure market, competing with rivals like Taiwan Semiconductor Manufacturing Co. South Korea plans to double its memory production capacity within five years to strengthen its global manufacturing leadership. Samsung’s collaboration with Broadcom complements similar efforts by domestic peer SK Hynix Inc., reflecting the country’s broader strategy to lead in AI chip production.
Samsung’s $200 billion deal with Broadcom is part of a wider South Korean initiative to boost AI chip manufacturing capabilities. The partnership will run through 2030, supporting Broadcom’s next-generation AI products with Samsung’s cutting-edge 2nm process technology, according to fortune.com.