Samsung wins Broadcom chip deal worth more than $200 billion
Samsung says the five-year Broadcom order covers 2-nanometer and smaller chipmaking for AI accelerators and networking silicon.
By Maya Lindqvist · Senior Technology Correspondent
2 min read
Samsung Electronics said it has secured a Samsung Broadcom chip deal worth more than $200 billion, a major order aimed at products used in artificial intelligence infrastructure. The agreement gives Samsung a large customer for its most advanced manufacturing processes as chipmakers compete for AI-related work.
The South Korean company said Saturday that the contract runs for five years through 2030. Samsung said the work will center on 2-nanometer and smaller process technologies for Broadcom products.
Samsung described the agreement as an expansion of its broader relationship with Broadcom in memory and foundry technology. In chipmaking, a foundry manufactures semiconductors designed by other companies, making major customer wins a key measure of demand for advanced production capacity.
What does the Samsung Broadcom chip deal cover?
Samsung said the contract covers advanced manufacturing for Broadcom chips using 2-nanometer and smaller technologies. The company also said it will support Broadcom’s next-generation AI accelerators on the memory side.
Samsung said the collaboration is expected to include advanced packaging based on its 2-nanometer process, including 2.3D and 2.5D integration. Those packaging approaches are intended to help produce AI and networking chips with stronger performance and better power efficiency, according to Samsung.
The order comes as Samsung and SK Hynix push harder for AI chip business, with Taiwan Semiconductor Manufacturing Co. named among the major rivals in the field. Samsung and SK Hynix are both South Korean companies with large roles in global memory production, and the AI boom has made high-end chips and packaging more important to technology suppliers.
South Korea aims to double its memory production capacity within five years, according to the reported plans cited alongside the deal. The country also wants stronger manufacturing capabilities as it seeks to widen its lead over competing nations in advanced chip production.
The announcement coincides with South Korean President Lee Jae Myung’s visit to Silicon Valley, where he is attending an AI summit. Several technology agreements are being announced during the trip, including partnerships involving Nvidia, South Korea’s Naver and SK Hynix.
The Broadcom order gives Samsung a prominent AI infrastructure customer at a time when demand for accelerators, networking silicon and memory is reshaping the semiconductor market. Samsung’s statement did not provide a product-by-product breakdown of the order or disclose further financial terms beyond saying the contract is worth more than $200 billion.
This story draws on original reporting from Fortune.